2. Company A has the following market value balance sheet: Assets l Liabilities $90M PV(Operating Assets) $50M Debt $10M Excess Cash $50M Equity The expected return on equity = rE = 30%. The debt is risk free and has expected return rD = 10% = risk free rate. The excess cash also yields the risk-free rate. The company is faced with a new investment opportunity that has the same systematic risk as the operating assets of the company. It will require an investment of $10M today and will give an expected cash flow of $11.5M one year from now and nothing after that. Thus, the expected return on the project is 15%. i) What is the NPV of the new project