Companies A and B are each considering an unanticipated new investment opportunity that will marginally increase the value of the company and will also increase the companys level of diversication. Company A is unlevered, and company B has a capital structure of 50% debt. Assume that the shareholders control the company, which one of the following statements is correct.

a) Since NPV of the investment is positive both company A and B will accept the project.

b) Since the project only marginally increase company values but decreases return variance of the companys assets both companies will reject the project.

c) It is more obvious that Company B invests since for levered company the diversication benefits are more important.

d) None of the given alternative.