3. Currently, the finance department at Gannon Industries has recommended a capital project that has a positive NPV. Management at Gannon has not proceeded with the positive NPV project since a key decision maker does not want to risk doing the capital project in case it fails. The manager is near retirement, wants to collect his pension, and does not want anything to interfere with his retirement plans. Which of the following best describes the management situation at Gannon Industries? A. Gannon Industries should look at the IRR to reduce the project risk. B. Gannon Industries should look at the Profitability Index to reduce the project risk. C. The finance department should look at lowering the WACC to reduce the project's payback. D. There is evidence of a managerial compensation problem at Gannon Industries. E. There is evidence of an agency problem at Gannon Industries. F. There is evidence of a Sarbanes-Oxley Act violation