The Nominal Rate of Interest Is 8

The nominal rate of interest is 8.5 percent, and the real rate is 5 percent.The expected rate of return on an investment is 8 percent.The firm should

A) not undertake the investment, because the expected rate of return of 8 percent is less than the nominal interest rate.
B) not undertake the investment, because the expected rate of return of 8 percent is less than the nominal plus the real interest rate.
C) undertake the investment because the expected rate of return of 8 percent is greater than the difference between the nominal and real interest rates.
D) undertake the investment because the expected rate of return of 8 percent is greater than the real rate of interest.