Consider a project with free cash flows in one year of $$90,000$ in a weak economy or $$117,000$in a strong economy, with each outcome being equally likely. The initial investment required$$for the project is $$80,000,$ and the project's cost of capital is $15\%.$ The risk$-$free interest rate$$is $5\%.$a$.$ Suppose that to raise the funds for the initial investment, the project is sold to investors$$as an all$-$equity firm. The equity holders will receive the cash flows of the project in one$$year$.$ What is the market value of the unlevered equity for this project?$$b$.$ Suppose that to raise the funds for the initial investment the firm borrows $$80,000$ at the$$risk$-$free rate, then what is the cash flow that equity holders will receive in one year in a$$weak economy and in a strong economy? What is the value of the firm$$s levered equity$$from the project?$$c$.$ What is the cost of capital for the firm's levered equity?$$d$.$ Suppose now that to raise the funds for the initial investment the firm borrows $$40,000$ at$$the risk$-$free rate and issues new equity to cover the remainder. In this situation, what is$$the value of the firm$$s levered equity from the project and what is the cost of capital for$$the firm$$s levered equity?$$e$.$ Suppose that two separate firms are considering investing in this project. Firm$$Unlevered$$ plans to fund the entire $$80,000$ investment using equity, while firm$$Levered$$ plans to borrow $$45,000$ at the risk$-$free rate and use equity to finance the$$remainder of the initial investment. Construct a table detailing the percentage returns to$$the equity holders of both the levered and unlevered firms for both the weak and strong$$economy$.$ Calculate the total expected return for both the levered and unlevered firms.