Happyface Corporation is about to launch a new product. Depending on the success of the new product, Happyface may have one of five values next year: $200 million, $180 million, $160 million, $100 million, and $80 million. These outcomes are all equally likely, and this risk is diversifiable. Suppose the risk-free interest rate is 5% and that, in the event of default, 20% of the value of Happyface's assets will be lost to bankruptcy costs. (Ignore all other market imperfections, such as taxes.)

What is the initial value of Happyface's equity without leverage?