Firm XYZ operates for one period. XYZs assets in place worth 90 million in good state and 10 million in bad state. The probability of being in good state is 30% and the probability of being in a bad state is 70%. XYZ has outstanding debt with face value $40M. Assume that the riskless interest rate is 0 and that the existing debt receives no coupon.

XYZ is considering investing in a project which will generate 30 million in any states after one year. The initial cost of the investment is 20 million.

What is the NPV of this project? Will the shareholders invest in this project? Please provide detailed explanations and calculations.