Consider a project with free cash flows in one you of $147,800 $172,300, with each outcome being equally Roly. The initial investment required for the project is 802.300, and the project's cost of capital is 18%. The risk-free interest rate is 10% a. What is the NPV of this project? 6. Suppose that to raise the funds for the initial investment, the project is sold tortor as an all equly tim. The equy holders will receive the cash flows of the project in one you 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 592 300 is instead raised by borrowing of the risk free interest rate What are the cash fows of the levered equity, what is de intal value and what is the intal que according to MM? What is the NPV of this project? Next on 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) Consider a project with free cash flow in one year of $147,800 or 5172.300 with each otcome being equally ikely. The initial investment required for the projed is $82,300, and the 1 sation c. Suppose the initial $92.300 is instead raised by borrowing at the nak treo interest rate. What are the cash flow of the levered Couty, what nital value and what is the initial equity according to MM? The cash flows of the levered equity and its intal values according to Mare (Round to the nearest Gott Date 0 Initial Value Cash Flow Strong Economy Cash Flow Weak Economy Date 1 urse Next O a project with free cash rows in one year of $147.500 or $172.300 with each outcome being equally Koly. The initial investment required for the project is $92.300, and the Date 1 ation The cash flows of the levered equity and its Intl values according to MM are. (Round to the nearest dollar) Date 0 Initial Value Cash Flow Strong Economy Debt 592,300 Levered Equity Cash Flow Weak Economy se Next