A. Consider a project with free cash flows in one year of $150,000 in strong economy or $80,000 in weak economy, with each outcome being equally likely. The unlevered equity initial value (total firm value) is $100,000. Suppose funds are raised by borrowing 40% of the needed amount at the risk-free interest rate, and the remaining through levered equity. The current risk-free interest rate is 10% (20 marks) I What is the levered equity expected retum? What is the unlevered equity expected return? What is the levered equity sensitivity? iv. What is the unlevered equity risk premium