Geelong Inc $($GI$)$ is ready to launch a new product. Depending upon the success of this product, GI will have a value of either $$75$ million $($with a $30\%$ probability$),$ $$120$ million $($with a $25\%$ probability$),$ or $$180$ million $($with a $45\%$ probability$).$ The cash flows are unrelated to the state of the economy $($i$.$e$.,$ risk from the project is diversifiable$)$ so that the project has a beta of $0$ and a cost of capital equal to the risk$-$free rate, which is currently $4\%.$ Assume that the capital markets are perfect. Further assume that in the event of default, $25\%$ of the value of GI's assets will be lost in bankruptcy costs and suppose that GI has zero$-$coupon debt with a $$100$ million face value due next year. The total value of GI with leverage is:

Question $16$ options:

$$123$ million

$$240$ million

$$268$ million

$$320$ million

None of the above