Independent World Ltd has 3 options for business expansion. The first option is to acquire Great Wall Co. at a price of USD 10,000. For this first choice, Independent World projects a cash in of USD 1300 for 20 years. However, they also still have to invest USD 50 per year for 20 years.

For the second option, Independent World can launch Warzone Game products at an R&D cost of USD 500 and continued development costs in 1-3 years each USD 500 per year. Furthermore, until the 20th year, Independent World must carry out a promotional fee of US200 per year. The estimated cash in is: 230 in the first year 300 in the second year 350 in the third year 450 from the 4th to the 8th year. Then until the 20th year it is USD 500.

For the third option, the Independent world can launch StarsGamez products that require bigger investment but more cash in. The financial projections are like this: Initial R&D costs: USD 750 Development costs for years 1-10: USD 450; the next development cost until the 20th year will be reduced to USD 350. For cash in, in years 1-5 it has reached USD 300 per year. Years 5-10 are USD 500 per year. Years 11-13 cash in was USD 750 per year and would then be expected to jump to USD 1000 in years 14 and 15 respectively; USD 1250 respectively in years 16, 17 and 18. Cash in USD 2000 will be achieved in year 19 and USD 2250 in year 20. If the interest rate for investment held by Independent World is 10%, from the three options, which one do you suggest to do:

a. Making calculations for the analysis will get

b. Providing an explanation based on an analysis of why you choose a particular option will get

c. If the interest rate for investment changes to 7% or 12%, which choice will you take and explain.