A landowner in Texas is offered $200,000 for the exploration rights to oil on her land, along with a 25% royalty on the future profits if oil is discovered. The landowner is also tempted to develop the feld herself, believing that the interest in her land is a good indication that oif is present. In that case, she will have to contract a local arilling company to drill an exploratory well, which would cost $750,000 regardless of whether or not oil is found. If oll is discovered, however, the landowner expects to earn future profits of $7,500,000. Finally, the landowner estimates (with the help of her geologist friend) the probability of finding oil on this site to be 70%. What should the landowner do? a. She should sell the exploration rights as the expected profit of selling is 1.93 milion, which is higher than the expected profit of developing herself. b. She should develop herself as the expected profit of developing is 4.5 miltion, which is higher than the expected profit of selling. c. She should develop herself as the expected profit of developing is 3.75 million, which is higher than the expected profit of selling. d. There is not enough information to answer this