The Huck Glove Company manufactures the famous Flying Glove. If the winter is windy, then demand for glove will be high and free cash flow will be $5,000. (Assume that cash will flow at the end of the winter.) If the winter is not windy, then cash flow will be $3,000. Forecasters predict a 50% chance of a windy winter. The company has a debt with a principal of $4,000 that matures at the end of the winter. Assume that interest rates are zero. A scientist in the R&D department has designed a new glove that, when thrown, can hover for over 10 seconds. The Hover Glove project requires an investment of $500 immediately and will generate a cash flow of $900 at the end of the winter. Market research indicates that the Hover Glove will be so popular that there is no risk to the cash flows. Use this information to answer the following questions. Part 1 Ignoring the hover glove project, what is the value of the company's equity (E) and its debt (D)? E = $ DES Part 2 What is the NPV of the Hover Glove project? (Hint: The expected payoif less the investment. NPV = $ Part 2 What is the NPV of the Hover Glove project? (Hint: The expected payoff less the investment.) NPV = $ Part 3 What are the expected cash flows to stockholders if the Hover Glove project is accepted? Ignore the cost of the investment in the Hover project and include cash flows from the original project, the Flying Glove. Expected cash flows owners = $ Part 4 What are the expected cash flows to lenders if the Hover Glove project is accepted? Ignore the cost of the investment in the Hover project and don't forget to include cash flows from the Flying Glove. Expected cash flows to lenders = $|