IOE Inc. is financed entirely by financed by debt and equity. The riskfree rate is 4.5%. The firm is planing to undertake a project with the following prospects:

In scenario one, the firm is worth $100. This event has a probability of 75% to occur.

In scenario two, the firm is worth $60. This event has a probability of 25% to occur.

Using CAPM, it has been determined that the appropriate cost of capital (at which investors are willing to borrow or save) is 20% for the overall projects of this firm. How much would you be willing to pay today in order to benefit from such a project undertaken by the firm? Please show all work. Upvotes will be given for correct answer!