Energy Corp. has a market capitalization of $15 billion and debt with market value of $5 billion. Energy will keep its current Debt-to-Equity ratio constant. The equity cost of capital is rE = 10% and the cost of debt is rD = 6%. The corporate tax rate is 35%. Assume a market risk premium of 6% and a risky-free rate of 5%. The firm is considering an expansion project (i.e., same risk as the firms assets) with the following cash flows:

Year	0 1 2
Free Cash Flows ($M)	-100 70 120

Assume (correctly or incorrectly) that the Net Present Value of the project is $65M. How much new equity will Energy need to start the project? (A) $ 75.00M (B) $ 58.75M (C) $ 50.50M (D) $ 45.00M