(A) There is 60% chance that Australia will be in recession next year. Project MARS-a high tech venture-will have free cash flows of AUD 100,000 in one year if there is a recession. If there is no recession, the free cash flow will be AUD 120,000 in one year. The initial investment required for the project is AUD 80,000. If MARS raises the required funds for initial investment from the public debt market at risk-free rate of interest, what would be the cash flow that equity holders o MARS will receive in one year? What would be the cost of capital for the firm's levered equity? The project's cost of capital is 20%. The risk-free interest rate is 5%. Show your calculations. (2 marks). (A) There is 60% chance that Australia will be in recession next year. Project MARS-a high tech venture-will have free cash flows of AUD 100,000 in one year if there is a recession. If there is no recession, the free cash flow will be AUD 120,000 in one year. The initial investment required for the project is AUD 80,000. If MARS raises the required funds for initial investment from the public debt market at risk-free rate of interest, what would be the cash flow that equity holders o MARS will receive in one year? What would be the cost of capital for the firm's levered equity? The project's cost of capital is 20%. The risk-free interest rate is 5%. Show your calculations. (2 marks)