RCT is a firm in financial distress. They have extremely high financial leverage, pay high property taxes, pay high wages, and find themselves the defendant in a lawsuit that has the potential of a large settlement against the firm. In addition the firm is considering raising a significant amount of funds to use to drill for oil on land that they own, a project considered to have a negative NPV and be very risky. Which of the following actions is best from the standpoint of RCT's shareholders at this time?

Select one:

a. Accept the oil drilling project and try to raise the needed funds through new equity.

b. Accept the oil drilling project and try to raise the needed funds through new debt.

c. Reject the oil drilling project because it's too risky.

d. Reject the oil drilling project because it has a negative NPV.

e. The firm would be indifferent between any of the above choices.