Need help with C. That's all... see the graph need help with the 5 boxes in question C. I already have A. & B A. Is $36,993B. Is $135,530C.????
Do Homework - Kendra Prado - Google Chrome mathxl.com/Student/PlayerHomework.aspx?homeworkld=572397264&questionld=1&flushed=false&cld=6133209¢erwin=yes BUSI_570_DEA_5-20FALL1 Homework: Week Six Homework Assignment: Chapters 14 and 15 Save Score: 0 of 1 pt 9 of 28 (9 complete) HW Score: 32.14%, 9 of 28 pts P14-1 (similar to) Question Help Consider a project with free cash flows in one year of $132,732 or $178,988, with each outcome being equally likely. The initial investment required for the project is $98,537, and the project's cost of capital is 15%. The risk-free interest rate is 12% a. What is the NPV of this project? b. Suppose that to raise the funds for the initial investment, the project is sold to investors as an all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this way-that is, what is the initial market value of the unlevered equity? c. Suppose the initial $98,537 is instead raised by borrowing at the risk-free interest rate. What are the cash flows of the levered equity, what is its initial value and what is the initial equity according to MM? b. Suppose that to raise the funds for the initial investment, the project is sold to investors as an all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this way-that is, what is the initial market value of the unlevered equity? The initial market value of the unlevered equity is $ 135,530 . (Round to the nearest dollar.) c. Suppose the initial $98,537 is instead raised by borrowing at the risk-free interest rate. What are the cash flows of the levered equity, what is its initial value and what is the initial equity according to MM? The cash flows of the levered equity and its initial values according to MM are: (Round to the nearest dollar.) Date 0 Date 1 Initial Value Cash Flow Strong Economy Cash Flow Weak Economy Debt $98,537 Levered Equity Enter your answer in the edit fields and then click Check Answer. All parts showing Clear All Check Answer Type here to search O 2 hulu C O 40% 10:08 AM 10/6/2020