Unoit Industries has two mutually exclusive $50 million investment opportunities, R and S, which it plans to fund with debt. Project S pays off $60 million for certain, and project R pays off only $20 million when the economy is poor and $90 million when the economy is good.

For simplicity, assume that investors are risk neutral. What is the NPV of each project, assuming the economy is equally likely to be favorable or unfavorable and the discount rate is 0 percent.

	A.	NPV of Project S = $5 million, and NPV of Project R = $10 million.
	B.	NPV of Project S = $10 million, and NPV of Project R = $5 million.
	C.	NPV of Project S = -$5 million, and NPV of Project R = -$10 million.
	D.	NPV of Project S = -$10 million, and NPV of Project R = -$5 million.