Answer the following questions and justify your answers

California Real Estate, Inc., expects to earn $71 million per year in perpetuity if it does not undertake any new projects. The firm has an opportunity to invest $16 million today and the new investment will generate annual earnings of $11 million in perpetuity beginning next year. The firm has 15 million shares of common stock outstanding and required rate of return on the stock is 12 percent. Land investment are not depreciated. Ignore taxes.

a.What is the value per share of the company's stock assuming the firm does not undertake the investment opportunity?

b.What is the value of the investment?

c.If the firm does undertake the investment, what is the value per share now?