Massive Shrimp (MS) is considering a project with free cash flows in one year of $900,000 or $1,400,000 with equal probability. The cost of the project is $800,000. The projects cost of capital is 15% and the risk-free rate is 5%.

What is the expected cash flow in one year?

What is the NPV of the project?

If MS finances the project with equity, what is the initial market value of the unlevered equity?

What is the return on the unlevered equity?

If MS finances the project with 50% debt (at the risk-free rate), what is the expected return on the levered equity?