The answer is C. Why?

a 3. Suppose the perfect capital markets assumption holds and that equity holders of a company want to make a new investment. This firm has a debt Beta 20%, a debt of 500, an equity of 700, a volatility of 25% and a return on equity of 20%. The risk-free rate is 2% and the Market return 15%. For an investment of 100, equity holders will benefit from the new investment only when: A) NPV is larger than 0. B) NPV is larger than 9.35. C) NPV is larger than 10.35. D) NPV is larger than 57.14