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 $$129380.($Round to the nearest dollar.$)$

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$[[,\backslash$table$[[$Date $0],[$Initial Value$]],$Date $1],[,$Cash Flow Strong Economy,Cash Flow Weak Economy$],[$Debt$,$$$93,700,$:$,$$$],[$Levered Equity,s$,$$$,$$