Your company is considering launching a new line of eco-friendly household cleaning products. You estimate that there is an equal chance that the product line will be either a hit or a flop. If the product line is a hit, it will generate $20 million each year for the next 5 years starting in year 1. If it is a flop, it will generate $8 million each year for the same period. Launching the new product line will involve an initial expenditure of $40 million. The discount rate is 10%. a) What is the NPV of the project? b) Alternatively, you have an option to wait one year to assess the market response to a similar product launched by a competitor. There is an equal chance that the competitor's product will be either a hit or a flop. If the competitor's product is a hit, and if you proceed with your product development in year 1 after observing their success, you estimate that your product would generate $15 million each year for the next 5 years starting in year 2. If the competitor's product is a flop and you still decide to launch your product in year 1, your product would only generate $5 million each year for the next 5 years starting in year 2. Your company can decide to abandon the project after observing the competitor's results in year 1. Developing and launching the new product line will involve an expenditure of $40 million in year 1. What is the NPV of this project? The discount rate is 10%. c) What is the value of delaying your decision for one year? Given the circumstances, would it be more advantageous to be a first-mover or a follower in the product market?