The Hawks Inc. is deciding whether to invest in a new project. The firms market value is $2,000. The face value of debt in the balance sheet is $3,000. The one-year projects initial investment cost is $2,500. The firms equity will be entirely invested in the project. The remaining $500 of the initial cash outlay will be financed by shareholders. That is, shareholders will invest an additional $500 in the pr oject. The predicted cash flows are $3,500 in a good economy with an 80% probability and $2,000 in a poor economy with a 20% probability. The discount rate for the firm is 15% and the tax rate is zero. a. What is the expected payoff and NPV to debtholders if project is taken? Would they want the project to be accepted? b. What is the expected payoff and NPV to shareholders if the project is taken? Would they want the project to be accepted? c. If you assume the firm is all-equity, should the shareholders.