The table below presents the pay-off profile for the firm (all values in millions of $). Assume that the managers objective is to maximize the value to current shareholders and that the manager knows the true state of the world, but the public does not.

	Good State	Bad State
Probability	70%	30%
PV of Assets in Place	155	60
Investment Cost	30	30
PV of New Investment	35	33
NPV of Investment	5	3
Value of Assets with Investment	175	65

The manager announces that she will invest in the new project. Suppose that first the manager will raise $30M by issuing equity and that the public does not infer the state of the world from the managers actions.

What is the APV of the new investment project (NPV of the new investment plus the NPV of mispricing) if the manager know that the true state of the world is bad?

		3M
		19M
		33M