Running Shoes, Inc. Running Shoes, Inc. Has 2 Million Shares of Stock Outstanding

Running Shoes, Inc.
Running Shoes, Inc. has 2 million shares of stock outstanding. The stock currently sells for $12.50 per share. The firm's debt is publicly traded and was recently quoted at 90% of face value. It has a total face value of $10 million, and it is currently priced to yield 8%. The risk free rate is 2% and the market risk premium is 8%. You've estimated that the firm has a beta of 1.20. The corporate tax rate is 40%.
-A firm has a capital structure of 25% debt and 75% equity.Debt can be issued at a return of 9%,while the cost of equity for the firm is 12%.The firm is considering a $50 million expansion of their production facility.The project has the same risk as the firm overall and will earn $10 million per year for 7 years.What is the NPV of the expansion if the tax rate facing the firm is 40%?

A) -$1.9 million
B) -$1.4 million
C) $0.4 million
D) $1.4 million