McWorth currently has a bond issue outstanding with a face value of $29 million that is due in one year. Covenants associated with this bond issue prohibit the issuance of any additional debt. This restriction means that the expansion will be entirely financed with equity at a cost of $5.7 million. Charlotte has summarized her analysis in the following table, which shows the value of the company in each state of the economy next year, both with and without expansion.

Because of the bond covenant, the expansion would have to be financed with equity. How would it affect your answer if the expansion were financed with cash on hand instead of new equity?

Economic	Probability	Without	With
Growth		Expansion	Expansion
Low	0.3	$25,000,000	$27,000,000
Normal	0.5	$30,000,000	$37,000,000
High	0.2	$48,000,000	$57,000,000