MetalWorks Has to Decide Whether to Reopen Its Patagonian Gold

MetalWorks has to decide whether to reopen its Patagonian gold mine, which has 5000 ounces of gold that can be mined, which will take one year. The cost of reopening the mine is $2 million and the variable cost of extraction is $900/oz. The current gold price is $1,200/oz. but could be $1,600/oz. or $800/oz. in one year's time with equal probability. The company requires a return of 16% on its investment. Which of the following should MetalWorks do?

A) Not invest as the project has a negative NPV
B) Invest regardless of the future gold price as the project has a positive NPV
C) Only invest when the gold price is $1,600 in one year's time
D) MetalWorks needs more information to make the correct decision