Break-Up Exercise Start-Up Inc., an entrepreneurial company, has some assets in place that in a period from now will be worth either $50 or $10, with equal probability. The face value of the existing debt is $20. The company is facing a new investment opportunity that is a carbon copy of the existing assets. This project requires $26 of initial investment and provides an expected payoff of $30. The payoff of the new investment is perfectly correlated the existing assets. Assuming that investors are risk-neutral, and that the proper discount rate is zero, please answer the following questions: a. Would the entrepreneur like to finance the project with senior debt? b. What is the effect on existing debt of issuing the new senior debt to finance the project? c. Suppose that the company cannot issue any debt. If the debt holders are willing to make a concession that would reduce the face value of the debt, is it possible for the investment to be financed with equity?