please answer

The All-Mine Corporation is deciding whether to invest in a new one-year project. The project would have to be nanced by equity, the cost is $2,000, and the return will be a guaranteed $2,500 in one year. The discount rate for both bonds and stock is 15 percent and the tax rate is zero. The predicted cash flows excluding this new project are $4,500 in a good economy, $3,000 in an average economy, and $1,000 in a poor economy. Each economic outcome is equally likely to occur and the promised debt repayment is $3,000. Should the company take the project? What is the value ofthe rm and its debt and equity components before and after the project addition? Essay Toolbar navigation K! [I 319% PM I'll |I||| |Ii|| hill i l J3 l I l