5. Consider a project with free cash flows in one year of $100,000 in a weak economy or $120,000 in a strong economy, with each outcome being equally likely. The project's cost of capital is 15%. The risk-free interest rate is 7%. Suppose that to raise the funds for the initial investment the firm borrows $50,000 at the risk free rate and issues new equity to cover the remainder. In this situation, the cash flow that equity holders will receive in one year in a strong economy is closest to:

Select one: A. $70,000 B. $100,000 C. $0 D. $66,500 E. $120,000