@ Consider a firm with the following book value (BV). and market (MV) balance sheets. Assets IBSUBV I MV I liabilities & Equities BV /MV 600 8500 Cash $500 Fired asset I 300 16800 Total $400 Total Bonds Song 2000 800 540 a) Suppose the company has an opportunity to invest $900 Today in a project that has a 0.2 probability of paying off $1000 at Are 1 and or 8 probability of paying off at $0 at tine. 1. The required retuin on project is 40%. is what is project's NPU? ) What is the value of bonds, the value of stock, and - the value of the firm if the project is undertaken b) How do bondholders and stockholders' preferences with grespect to NPV rule for high risk projects differ when the firm is in financial distreas? Explain. @ Consider a firm with the following book value (BV). and market (MV) balance sheets. Assets IBSUBV I MV I liabilities & Equities BV /MV 600 8500 Cash $500 Fired asset I 300 16800 Total $400 Total Bonds Song 2000 800 540 a) Suppose the company has an opportunity to invest $900 Today in a project that has a 0.2 probability of paying off $1000 at Are 1 and or 8 probability of paying off at $0 at tine. 1. The required retuin on project is 40%. is what is project's NPU? ) What is the value of bonds, the value of stock, and - the value of the firm if the project is undertaken b) How do bondholders and stockholders' preferences with grespect to NPV rule for high risk projects differ when the firm is in financial distreas? Explain