Cameron Jones spent $3 million last year upgrading the research area of her building. Now, she wants to renovate the building again, and estimates it will cost $2 million. She thinks this will increase profits by $1 million annually going forward. In calculating the future net income of this new project, which number should she exclude? (note: do not consider the time value of money in your answer)

a) $2 million, because that is the cost of the project

b) $2 million, because it is not revenue

c) $3 million, because it is a sunk cost

d) $1 million, because it is not guaranteed profit