Consider a bright entrepreneur living in a Perfect Capital Market (PCM) under certainty with only two time periods where r=10% or 0.1. S/he does not have any initial material wealth but has a brilliant project which consists of generating 55,000 TL in t=2 by investing 30,000 TL during t=1 to make a better mousetrap. Our entrepreneur wants to finance the project by borrowing in the capital market. (V= value of the firm for this entrepreneur;

X=net earnings, I=investment expenditures, d=dividend per share, N=number of shares

a) Is this a "good" project? Explain.

b) Can s/he finance this project? How?

c) What is the value of this project for our entrepreneur?