The following scenario contains all the information you need to answer the questions - use what's here, do not include additional analysis from the case or elsewhere.

Your company has $10,000,000 in "excess cash" - more than you need to provide a cushion on your balance sheet to protect against risk. Jane, your crack financial analyst, has prepared a set of options for you to consider. They are:

A) Keep the $10,000,000 on the balance sheet and earn a 3.0% after-tax return from the bank for the next 15 years.

Jane tells you that your tax-affected cost of capital (the appropriate discount rate to use) is 20%. Whatis the value of option A to current shareholders?