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Lux Enterprise is considering an investment project that generates a cash flow of $1,800,000 next year if the economy is favorable but generates only $900,000

Lux Enterprise is considering an investment project that generates a cash flow of $1,800,000 next year if the economy is favorable but generates only $900,000 if the economy is unfavorable. The probability of favorable economy is 55% and of unfavorable economy is 45%. The project will last only one year and be closed after that. The cost of investment is $1,300,000 and Lux Enterprise plans to finance the project with $350,000 of equity and $950,000 of debt. Assuming the discount rates of both equity and debt are 0%. What is the expected cash flow to Lux Enterprise s creditors if the enterprise invests in the project?

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