In an IPO, NeoDiagnostic sold 10,000 shares for $35 each, but all the money except for $100,000 was subsequently spent on an R&D project. NeoDiagnostic Inc therefore currently has $100,000 cash on hand and, so far as investors know, no other assets. NeoDiagnostic announces that the R&D project yielded a newly obtained patent that the firm wants to exploit in a new manufacturing operation. NeoDiagnostic has determined that it will need to invest $525,000 to move into the manufacturing phase for its new product. It intends to raise some of the new funds it will need by borrowing $200,000 at an interest rate of 6% per annum. The debt will be retired in full at the conclusion of the project in 11 years from now. Assume that the corporate tax effect of debt approximates the overall effect of debt on firm market value. Remaining funds needed for the investment will be raised through a new equity issue. NeoDiagnostic assumes that the new project will not alter investor's perceptions of the fundamental risks for the company's business. The CAPM beta coefficient for NeoDiagnostic's (currently unlevered) equity is 2.19, while the riskless interest rate is 3.25% and the market risk premium is 5.25%. The corporate tax rate is 34%. The project is expected to return before-tax cash flows of $94,730 at the end of the first year, growing at 7.5% annually for each of the following 10 years, at which point the project ends. The $525,000 investment can be depreciated on a straight-line basis over 10 years, with the first allowance applicable one year from today. NeoDiagnostic will use the riskless interest rate to discount the associated depreciation tax shield. Use the APV approach to levered valuation to calculate the NPV of this investment project. What should happen to the price of the company's stock upon announcement of the investment project and associated financing mechanism? How many shares would have to be floated to finance the investment? Write down the market value balance sheet immediately before the project and associated financing mechanism is announced. Write down the market value balance sheet immediately after the project is announced but before the debt and new equity have been sold. Write down the market value balance sheet after the debt and new equity have been sold but before the investment has occurred. Finally, write down the market value balance sheet immediately after the investment has been made before any other revenue or expenses have accrued