Debt and Equity as Options

Q$3.$ Occam Razor is close to bankruptcy. The company currently has assets worth $$860,000,$ but it has zero coupon debt outstanding with a face value of $$800,000.$

Occam executives are considering a new, risky strategy. The new strategy requires no upfront investment, but it has only a $40\%$ chance of success. If it succeeds it will increase firm value to $$1$ million, but if it fails the value of assets will be $$0\mathrm{.}7$ million.

$\backslash$table$[[$New Risky Strategy,Value of Assets Value of Debt,Value of Equity$],[$Success$,?,?$