Nike doesn't know the projected outcome of their Space Hippie Shoe. They see 3 possible scenarios: Case 1- Wide acceptance : The y invest $23 million in shoe development up front and $4 million per year in marketing and they get wide acceptance of their product with annual profits of $9 million. They predict a 40% change of this for a 10 year project life. Case 2 - Starting great sales then taper off: They invest $23 million in shoe development and $4 million per year in marketing. They get excited customers the first few years, then customers find they aren't that comfortable so bad Google Reviews make them die off. They predict starting sales of $12 million, but going down $1 million every year. 10 year life, 40% chance. Case 3 - Never get traction: They invest $23 million in shoe development and $4 million for years 1-3 in shoe marketing, but when they see it s not working they 'double down' and invest $8 million for years 4-10 in marketing. They still only get annual profits after all of that of $6 million. 20% chance of that. What is the expected NPV of this project at Nike's 10% ROI threshold? Would you recommend it?

a) -5.5M, No

b) $3,2M, Yes

c) -$0.67 M, No

d) +0.67 M, Yes