Swenson & Sons is a retail outlet that offers reading materials such as magazines and newspapers to the general public. Sit n Sip is a delicatessen that sells variou s flavored coffees and teas along with fresh sandwiches. Swenson & Sons has a cost of capital of 12.5 percent while Sit n Sips cost of capital is 14 percent. Swenson & Sons is considering expanding so that it can offer drin ks and sandwiches to its patrons. The expansion project has a positive NPV at a 12.5 percent discount rate and a negat ive NPV as a 14 percent rate. Given this, should Swenson & Sons expand its operations?

A. yes

B. no

C. only if they merge with Sit n Sip

The correct answer is B, please give detailed explanation, thank you