capital is 20%. The risk-free interest rate is 10%. (Assume no taxes or distress costs.) a. What is the NPV of this project? initial market value of the unlevered equity? equity according to MM? Assume that the risk-free rate remains at its current level and ignore any arbitrage opportunity. a. What is the NPV of this project? The NPV is \$ 29167 . (Round to the nearest dollar.) initial market value of the unlevered equity? The initial market value of the unlevered equity is $ (Round to the nearest dollar.) equity according to MM? The cash flow of the levered equity in a weak market at the end of year 1 is $ (Round to the nearest dollar.)