In 1967, Lockheed planned to build a wide-bodied passenger aircraft called the L-1011 Tri Star airbus. The pre-production phase of the Tri Star project was planned to end in 1971 and total $1B. Lockheed planned to sell 35 aircraft per year for six years between 1972 and 1977 with an operating profit of $2M per aircraft. This sales forecast was aggressive as it represented a market share of 45% of the world market for wide-bodied aircraft (which was forecast to be about 80 aircraft per year). By 1971 the company was in financial distress and has to seek a government bailout. At the end of 1967, Lockheed has 11.3 million shares outstanding which traded at $70 per share. If the market has known the NPV of the L-1011 project at that time, then what would the stock price have been?

A. Larger than $70; hard to tell without more info.

B. Much less than $70, as the project clearly has a large, negative NPV.

C. About $70; the NPV of the project was close to zero.

D. $70; the NPV of a project does not affect the stock price.