Consider a project with free cash flows in one year of $$147,930$ in a weak market or $$177,995$ in a strong market, with each outcome being

equally likely. The initial investment required for the project is $$95,000,$ and the project's unlevered cost of capital is $17\%.$ The risk$-$free interest

rate is $9\%.($Assume no taxes or distress costs.$)$

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 $$95,000$ is instead raised by borrowing at the risk$-$free interest rate. What are the cash flows of the levered equity in a

weak market and a strong market at the end of year $1,$ and what is its initial market value of the levered equity according to MM$?$

a$.$ The NPV is $$44,284.($Round to the nearest dollar.$)$

b$.$ The initial market value of the unlevered equity is $$139,284.($Round to the nearest dollar.$)$

c$.$ The cash flows of the levered equity in a weak market and a strong market at the end of year $1,$ and the initial market value of the levered

equity according to MM is: $($Round to the nearest dollar.$)$ I only need C solved please, i've done the other questions