Trey Jackson, CFO of Jackson Exploration, Inc. is deciding how to approach a particular oil well project. If the company drills today, the project would cost $925,000 today, and would provide estimated cash flows of $600,000 per year at the end of each of the next 4 years. However, if the company waits a year before drilling, the company would have more geological information regarding the well's possibilities. The company estimates that if it waits 2 years, the project would cost $975.000 and would have a 65 percent chance of having net cash flows of $1,000,000 per year for 4 years, and a 35 percent chance of having net cash flows of only $300,000 per year for 4 years. Assume a discount rate of 17.5 percent. What should the company do? A. Wait two years since the expected NPV (in today's dollars) of waiting is $74,430 higher than the NPV for drilling now. B. Go ahead and drill now since the NPV of drilling today is $63,298 higher than the NPV for waiting two years. Wait two years since the expected NPV (in today's dollars) of waiting is $115,009 higher than the NPV for drilling now. D.Go ahead and drill now since the NPV of drilling today is $11,124 higher than the NPV for waiting two years. E-Go ahead and drill now since the NPV of drilling today is $42,078 higher than the NPV for waiting two years. QUESTION 16 Consider the following information for Shefali Chopra's 3-stock portfolio. If the market required rate of return (km) is currently 16 percent, and the nominal risk-free rate is 6.5 percent, what is the required rate of return on her portfoli o? Stock Beta Investment $2,000 5,000 3,000 0.93 1.39 Z A 24.45 percent B. 17.16 percent C-23.65 percent D.17.53 percent E. 16.68 percent