B6. (NPV and shareholder wealth) Stockholders are surprised to learn that the firm has invested $43 million in a project that has an expected payoff of $8 million per year for six years. The project’s...

B6. (NPV and shareholder wealth) Stockholders are surprised to learn that the firm has invested $43 million in a project that has an expected payoff of $8 million per year for six years. The project’s cost of capital is 12%.

1. What is the project’s NPV?


2. There are 3 million outstanding shares. What should be the direct impact of this invest- ment on the per-share value of the common stock?