Consider a project with free cash flows in one year of $145,000 or $195,000, with each outcome being equally likely. The initial investment required for the project is $120,000, and the project's cost of capital is 30%. 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 $120,000 is instead raised by borrowing at the risk-free interest rate. What are the cash flows of the levered equity, and what is its initial value according to MM?