Olympus Property Management owns two million square feet of land (about 46 acres) in the Woodlands. The managers have two projects for developing this property:

Galleria West Shopping Plaza, NPV = $12 billion

Ben Dover Office Complex, NPV = $10 billion

Once developed, Olympus will manage the property for 30 years. The property has space for only one or the other of these projects.

Which project(s) should the management at Olympus Property choose, and why?

Ben Dover Office Complex, because it has the higher NPV, and its NPV > 0.

Both projects, because both have positive NPV.

Galleria West Shopping Plaza, because it has the higher NPV, and its NPV > 0.

Neither project, because both have negative NPV.