#2 (6 points) The Red Company is financed by $80,000,000 of equity and $20,000,000 of debt. The CFO of this company is thinking about investing in a big project which will require $10,000,000 initial investment immediately, which they can afford with additional debt. . The company's current cost of equity is 10% and the cost of debt is 5%. There is 60% chance that the project will turn out to be very successful and generates $3,000,000 each year for 10 years with the first payment at the end of year 1. There is 40% chance that the project will not be very successful, but will still generate $ 1,000,000 each year for 10 years with the first payment at the end of year 1. Should the Red Company invest in this project or not? Use a decision tree if you want but it is not required A. 3000000 a a To