John Steinbeck, CEO for Good Books Inc, is evaluating the possible expansion into the classic novels genre. He found a Return on Investment, ROI, of 45% for the multiyear expansion. John should:

Group of answer choices

Tell the executive team the expansion appears to very profitable based on the corporations standard ROI of 12%.

Compare the ROI to the corporations cost of capital and accept the project if greater than the firms WACC.

Since the ROI violates the concept of the time value of money, he should ignore the ROI.

Proceed with the expansion assuming the NPV must be positive given the high return.