Axelron Corporation's primary business is natural gas transportation using its vast gas pipeline network. Axelron's assets currently have a market value of$$158$ million. The firm is exploring the possibility of raising$$49$ million by selling part of its pipeline network and investing the$$49$ million in a fibre$-$optic network to generate revenues by selling high$-$speed network bandwidth. Whereas this new investment is expected to increase profits, it will also substantially increase Axelron's risk. If Axelron is levered, would this investment be more or less attractive to equity holders than if Axelron had no debt?Question content area bottomPart $1($Select the best choice below.$)$A$.$No difference: Leverage has no effect on how attractive the investment is$.$B$.$Less attractive: Having leverage will raise Dynron's equity cost of capital, making new investments less attractive.C$.$Less attractive: Equity holders in a levered firm will prefer that the firm reduce its risk to minimise the possibility of default.D$.$More attractive: Equity holders in a levered firm will benefit from an increase in the risk of the firm's investments.E$.$More attractive: The tax benefits of leverage will make the new investment more attractive.