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please answer A-C and please show me how it is done. A biotech company is considering investing in an R&D project to develop a new

please answer A-C and please show me how it is done.

A biotech company is considering investing in an R&D project to develop a new flu vaccine. The project requires an initial investment of $30 million (year 0). Immediately after the initial investment, you will learn if the project is a success. The chance of success is 60%. In the case of success, the vaccine yields an expected cash flow of $46 million in one year (year 1). In the case of failure, the project ends with no future cash flow. The firm's cost of capital is 25% and the risk-free rate is 10%.

(a) What is the NPV of the project?

Suppose that if the project is successful, the firm can further develop a generation-2 (G-2) vaccine in year 1. The G-2 vaccine requires an additional investment of $40 million in year 1; its chance of success is 84%, yielding an expected cash flow of $113 million in year 2 if successful.

(b) What is the NPV of the G-2 vaccine in year 1?

(c) What is the total NPV of the project in year 0 with the G-2 vaccine?

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