Mitch Plc$,$ a UK$-$based smart phone manufacturer, is considering adding a new model of

smart phones to its current production line. The success of the new model depends on general

market conditions. Mitch$$s current share price is $100.$

If the conditions are good, the revenues from the project are estimated to be $30$ million a

year for $5$ years, starting a year from now, and the share price will be $150.$ On the other

hand, if the conditions are bad, the revenues are expected to be $5$ million a year for the first

$3$ years, and $2$ million for the remaining $2$ years of the project, and the share price will be

$50.$ The initial cost of the project is $50$ million. The risk$-$free rate is $10\%.$

Required

a$)$ Calculate the Net Present Value $($NPV$)$ of the project.