The current market value of the firms assets is $20,000. The value of the firms asset is going to be either $23,000 or $18,000 next year. Suppose the firm is considering a zero NPV project. If the project is undertaken, the firms asset will be either $25,000 or $16,000. How will the value of equity change as a result of taking the project? How will the value of debt change?

	a.	Both the equity and debt values decrease.
	b.	The debt value increases, but equity value decreases.
	c.	Both the equity and debt values increase.
	d.	As the new project has zero NPV, the equity and debt values do not change.
	e.	The equity value increases, but the debt value decreases.