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Consider a project with free cash flow in one year of $143,376 or $180,488, with either outcome being equally likely. The initial investment required for

Consider a project with free cash flow in one year of $143,376 or $180,488, with either outcome being equally likely. The initial investment required for the project is $70,000, and theproject's cost of capital is 19%. Therisk-free interest rate is 7%. (Assume no taxes or distresscosts.)

a. What is the NPV of thisproject?

b. Suppose that to raise the funds for the initialinvestment, the project is sold to investors as anall-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this waythat is, what is the initial market value of the unleveredequity?

c. Suppose the initial $70,000 is instead raised by borrowing at therisk-free interest rate. What are the cash flows of the leveredequity, and what is its initial value according toM&M?

Part A I got NPV =6607

Part B I got 136007

part A and B are correct

Part C is where im struggling It is giving me a chart and I have to fill in the missing values The **** below are the missing values (5 missing values) I need to enter

date 0 Date 1

Initial Value Cash Flow Strong Economy Cash Flow Weak Economy

Debt

$70,000 ****** *****

Levered Equity ******* ***** *****

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