Firm A is currently 100% equity financed, and it has the following balance sheet:

Assets Debt

100,000 0

Equity

100,000

Suppose Firm A wants to invest in a project that has total present value equal to $50,000. Using MM propositions with taxes, and assuming that the corporate tax rate is 40%, what would be the total value of Firm A (value of assets) if it used debt to finance the project?

		$100,000
		$170,000
		$130,000
		$50,000
		$150,000