Your project manager has forecast savings from a propose investment to most likely be $10m a year for the next 10 years. He believes there is a 10% chance that it will be 12m and a 10% chance that it will be 8m. You run the numbers and discover that NPV on the project is negative using an 8m number for savings. You present your analysis to your partners and receive the following opinions. Which is most correct?

a. Accept the project if savings are 10m and 12m, reject if 8m.

b. Accept the project b/c the likelihood of a 8m savings is very low.

c. reject b/c it is better to be safe than sorry.

d. the weighted average and NPVs for the 3 cases is positive; hence we should accept the project.