Company X is considering an expansion. The project has an estimated internal rate of return equal to 8%. The company has a debt to equity ratio equal to one. The yield to maturity on its bonds is 5%, while the cost of the companys equity is estimated to be 15%. The companys CEO, who is keen on the expansion project, argues that the project would be profitable if the company were to entirely finance it by issuing debt. The CFO, however, is sceptical and believes there is a logical flaw in the CEOs argument. Who do you think is right? In no more than 200 words, give reasons for your answer by referencing relevant corporate finance theories.