Consider a firm financed with an initial investment of $100 million in February 2006. In exactly one year it must decide whether to go ahead with a project that requires an additional $100 million investment. The present values (as of February 2007) of the firm's payoffs from taking or not taking the additional investment in the three future states of the economy are given as follows. This problem is from the book by Grinblatt and Titman, Financial Markets and Corporate Strategy, p. 641. Good $250 $50 Value with investment Value without investment Medium $175 $50 a) What is the NPV of the project in each of the states as of February 2007? Bad $125 $50