The manager for Blooper Industries has the following information about a new product proposal. The product, Product-X, already undergone market research tests for a cost of $5 million, is seen to have good potentials. As a result, the manager has requested and received further information, mostly estimates, about Product X, as follows: 1. Product X's life is expected to be five years. 2. It requires an initial cash investment outlay of $10 million, depreciated on a straight-line basis over the next five years. Salvage value at the end of year five is zero. 3. The project will require Blooper to invest $2 million in working capital in year zero, which can be recovered fully at the end of project (year 5). 4. The firm's marginal tax rate is 40 percent; the opportunity cost of capital is 16 percent. 5. Cash revenues and cash operating expenses for the next five years are expected to be Year 1 Year 2 Year 3 Year 4 Year 5 Cash revenues $15,000,000 $16,500,000 $18,150,000 $19,965,000 $21,962,000 Cash operating exp. 10,000,000 10,500,000 11,025,000 11,576,000 12,155,000

1. If the manager decides to go ahead with X, what would happen, in theory, to the per share market price of Blooper when the project is announced to the public?