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firm has outstanding equity and bonds. Today. (time 0) the firm has $300 in cash and no other assets with market value. Next perio time

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firm has outstanding equity and bonds. Today. (time 0) the firm has $300 in cash and no other assets with market value. Next perio time 1), the firm has a maturing bond issue that requires a $400 payment to bondholders. The firm has no other debts. Assume that the Absolute Priority Rule holds in bankruptcy. Suppose the firm has only one project available that requires a $300 investment (all the firm's cash) at Time 0 . The project has a 20% chance of realizing a cash flow of $1,000 at Time 1 and an 80% chance of realizing a cash flow of $0 at Time 1 . The appropriate discount rate for the project is 25%. a. What is the project's NPV? (Enter your answer without the dollar sign. Round your final answer to the nearest dollar.) Project NPV b. If the firm rejects the project, What is the bondholders' expected cash flow at time 1? What is the stockholders' expected cash flow at time 1? (Enter your answer without the dollar sign. Round your final answer to the nearest doliar.) Bondholders' expected cash flow \$ $ Stockhoiders' expected cash flow \$ $ c. If the firm accepts the project, what is the bondholders' expected cash flow at time 1. What is the stockholders' expected cash flow at time 1? Enter your answer without the dollar sign. Round your final answer to the nearest dollar

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