Faro Ltd. is considering building a plant. After an initial investment of euro 100 million, the plant will be completed in one year and then have the series of annual cash flows as: If economy is doing well one year from now, next year's cash flow will be pound 10 million followed by a perpetual annual cash flow stream of pound 15 million. If economy is doing bad one year from now, next year's cash flow will be pound 10 million followed by a perpetual annual cash flow stream of pound 2.5 million. Faro's managers can decide to immediately invest the pound 100 million, or they can wait until next year to decide whether to build or not. If they wait until next year they would be investing only if economy is doing well. Assuming that the risk-free interest rate is 5% per year and that euro 1.00 invested in the market portfolio today will be worth either pound 1.30 (if the economy does well or pound 0.80 (if the economy does poorly), compute risk-neutral probabilities and the Net Present value (NPV) of the project. Decide whether or not the managers should wait until next year