Consider a project with free cash flows in one year of $$142,900$ or $$170,200,$ with each outcome being equally likely. The initial investment required for the project is $$93,700,$ and the project's cost $0$ capital is $21\%.$ The risk$-$free interest rate is $12\%.$

a$.$ What is the NPV of this project?

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

c$.$ Suppose the initial $$93,700$ is instead raised by borrowing at the risk$-$free interest rate. What are the cash flows of the levered equity, what is its initial value and what is the initial equity according to MM$?$

a$.$ What is the NPV of this project?

The NPV is $ $($Round to the nearest dollar.$)$

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

The initial market value of the unlevered equity is $ $($Round to the nearest dollar.$)$

c$.$ Suppose the initial $$93,700$ is instead raised by borrowing at the risk$-$free interest rate. What are the cash flows of the levered e$$uity$,$ what is its initial value and what is the initial equity according to MM$?$

The cash flows of the levered equity and its initial values according to MM are: $($Round to the nearest dollar.$)$

Date $0$

Date $1$

$\backslash$table$[[,$Date $0,$Date $1,],[,$$$93,700,$Cash Flow Strong Economy,Cash Flow Weak Economy$],[$Debt$,$$$,$$$,$$