APPLE is considering to start a new line of cellphones (the aPhones). Mei provided a NPV modeling indicating that the project has a NPV>0. Karan pointed out that Mei's NPV modeling does not account for the fact that iPhone sales are likely to decline once customers face the new option. After accounting for this aspect, Karan estimated a NPV<0 for the aPhone project. Should APPLE take the project?

Note: You can ignore IRR and Payback Period information for this question and also assume all calculations performed by Mei and Karan are correct (they just disagree on whether the iPhone sales should be accounted for in the aPhone project).

A) No, because the decline in iPhone sales is relevant to the incremental UFCFs generated by the aPhone project, and thus the aPhone project has NPV<0

B) Yes, because the decline in iPhone sales is irrelevant to the incremental UFCFs generated by the aPhone project, and thus the aPhone project has NPV>0

C) No, because taking a project that introduces competition to your own product decreases firm value even if NPV>0

D) Yes, because taking the project will allow APPLE to extend its customer basis, and thus generate more cash flows going forward

E) It is unclear since both Mei and Karan have valid points