You are evaluating a possible project for your company involving the development of a new kind of computer mouse. The project requires an initial investment of $32 million to be made in each of the next three years. Sales and profits will begin in the 4th year. You expect to have sales in Year 4 of $24 million and cash profits of $7.8 million. Then, profits are expected to increase 6% annually. Assume for simplicity that all cashflows occur at the end of the year. The cost of capital is 12%, would you make the decision to start this project?

A. Yes

B. No