Question 5 (1 point) Consider a project with free cash flows in year one of $90,000 in a weak economy or $117.000 in a strong economy, with each outcome being equally likely. The initial investment required for the project is $80,000 and the project's cost of capital is 15%. The risk-free rate is 5%. 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. If you are a potential shareholder, what is the maximum price you would pay for this project? $98,600 $94,100 $90,000 $86,250 Cannot be computed