*super urgent*

Consider Orbison Sunglasses. The company considers expanding its product range by offering sunscreen as well as sunglasses. Orbison Sunglasses estimates that constructing a sunscreen factory will require an investment of $100 million. It estimates that selling sunscreen will create a total cash flow of $12 million next year that will grow by 1% annually forever. Assume the risk-free rate is 5% and the market risk premium is 4% as before. Assume further that the firm is fully equity financed. What is the internal rate of return of the sunscreen project? Assume Orbison estimates the risk of the new project to be in line with its existing business so that the beta is 1.5. What is the NPV of expanding?