Bob's is a retail chain of specialty hardware stores. The firm has 22,000 shares of stock outstanding that are currently valued at $68 a share and provide a 13.2 percent rate of return. The firm also has 600 bonds outstanding that have a face value of $1,000, a market price of $1,068, and a 7 percent coupon. These bonds mature in 6 years and pay interest semiannually. The tax rate is 35 percent. The firm is considering expanding by building a new superstore. The superstore will require an initial investment of $11.9 million and is expected to produce cash inflows of $1.1 million annually over its 10-year life. The risks associated with the superstore are comparable to the risks of the firm's current operations. The initial investment will be depreciated on a straight line basis over the life of the project. At the end of the 10 years, the firm expects to sell the superstore for $6.7 million. Should the firm accept or reject the superstore project and why? (Ignore the tax effect of the S6.7M sale) (This questions is worth twice the points!) 0 A. Accept; the project's NPV is $1.27 million. O B. Reject, the NPV is $1.06 million. O C. Accept; the project's NPV is $1.27 million. O D.Reject; the NPV-$3.27 million. O E. Reject; the NPV -$3.27 million