Burlington Corporation is considering an investment project that generates a cash flow of $2,100,000 next year if the economy is favorable but generates only $900,000 if the economy is unfavorable. The probability of favorable economy is 65% and of unfavorable economy is 35%. The project will last only one year and be closed after that. The cost of investment is $1,500,000 and Burlington Corporation plans to finance the project with $400,000 of equity and $1,100,000 of debt. Assuming the discount rates of both equity and debt are 0%. What are the expected cash flows to Burlington Corporation s creditors and shareholders if the company invests in the project?

		$1,030,000 to creditors and $1,000,000 to shareholders
		$1,030,000 to creditors and $650,000 to shareholders
		$900,000 to creditors and $650,000 to shareholders
		$0 to creditors and $650,000 to shareholders
		$900,000 to creditors and $0 to shareholders