15. A firm is considering a new venture that would cost$3.5million, which is expected to yield $1.2 million in annualprofits (each year) for the next four years. The current interestrate is 3%. The firm should:

a.) undertake the project regardless of the interest rate.

b.) invest in this new venture because the present value of netgain would be $960,000 (approx.)

c.) invest in this new venture because the present value of netgain would be $660,000 (approx.)

d.) not undertake the project since the costs are not offset byprofits