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Please Answer ASAP! Marie owns a parcel of land and is considering two possible development options which both use her signature Marie Pool technology. Option

Please Answer ASAP!

Marie owns a parcel of land and is considering two possible development options which both use her signature Marie Pool technology.

Option A: Create a private surf club, in which case she would have to invest $10 million today (EOY 0). The club would then generate an annual free cash flow of $2 million in perpetuity starting EOY 1.

Option B: Create a surf resort and hotel open to the public, in which case she would have to invest $50 million today (EOY 0). The resort would then generate an annual free cash flow of $6.5 million in perpetuity starting EOY 1.

Assume Marie's discount rate is 10% and that she can only invest in one of the two options.

Marie should:

a. Accept both options because they both have positive NPV

b. Reject both options because both have an IRR less than 10%

c. Choose Option B because it has a higher NPV

d. Choose Option A because it has a higher IRR

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