Suppose Captain Johns can raise the price of its specialty loaffrom $0.70 to $0.

Suppose Captain Johns can raise the price of its specialty loaffrom $0.70 to $0.75 without absorbing any extra costs. At thisprice it would sell 3 million loaves which is the capacity of thecurrent plant. If it doesnt raise its price it could sell moreloaves but would have to expand its production capacity. CaptainJohns tax rate is zero. Captain John decides to expand. Is this agood or bad decision?A. It is a good decision if the NPV of expansion is greater than$150000.B. It is a bad decision because we will lose customers.C. It is a bad decision because we lose $150000 inrevenue.D. It is a good decision because we will not lose customers.