distress costs.$)$

a$.$ What is the NPV of this project?

unlevered equity?

c$.$ Suppose the initial $$85,000$ is instead raised by borrowing at the risk$-$free interest rate. What are the cash flows of the levered equity, and what is its initial value according to M&M$?$

a$.$ What is the NPV of this project?

The NPV is $$45277.($Round to the nearest dollar.$)$

unlevered equity?

The initial market value of the unlevered equity is $$130277.($Round to the nearest dollar.$)$

c$.$ Suppose the initial $$85,000$ is instead raised by borrowing at the risk$-$free interest rate. What are the cash flows of the levered equity, and what is its initial value according to M&M$?$

The cash flows of the levered equity and the initial market value of the levered equity according to M&M is: $($Round to the nearest dollar.$)$