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solve this not in excel but by hand and explain every step please Problem - Write your answer in the space provided below. 44) The

solve this not in excel but by hand and explain every step please image text in transcribed
Problem - Write your answer in the space provided below. 44) The Lunda Corporation is deciding whether to invest in a new one-year project. The project would have to be financed 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% 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 of the firm and its debt and equity components before and after the project addition

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