Assume a zero percent discount rate for simplicity. Your current projects cost $200, and you know they will return $800 next year. There is a new project that will cost $300 and will return $500. Your investors believe, however, that both the current projects and the new projects will return only 50%. If you have no cash and can use only equity financing, what will the value of the combined firm be to the existing shareholders if the new project is undertaken?

A) $520

B) $780

C) $750

D) $800