Suppose a firm has assets worth $7 billion and is 100% equity financed in an efficient capital market. The firm finds an opportunity to buy assets which cost $17 billion and generate "expected" free cash flows with a present value of $23.5 billion? Suppose the firm raises $17 billion in perpetual debt to finance the project? In an MM world, what happens to the value of the firm's equity when it takes on this project? What would instead happen to the value of the firm's equity when it takes on the project if interest is tax deductible and the corporate tax rate is 35%?