A company WYZ is considering two alternative equipment:

Equipment A has an expected life of 3 years, will cost $5million, and will produce net cash flow of $3.75 million per year.

Equipment B has a life of 5 years will cost $8.5 million and will produce net cash flow of $4million per year.

XYZ company plans to serve the lager segment indefinitely. Inflation in operating costs is expected to be zero and the company's cost of capital is 15%. By how much would the value of the company increase per year if it accepted the project which creates more value for the firm:

a) 1,560,115.19

b) 1,464,317.80

c) 1,323,177.00

d) 1,708,453.12

e) None of the above