the project's unlevered cost of capital is 16%. The risk-free interest rate is 7%. (Assume no taxes or distress costs.) a. What is the NPV of this project? raised in this way - that is, what is the initial market value of the unlevered equity? market value of the levered equity according to MM? Assume that the risk-free rate remains at its current level and ignore any arbitrage opportunity. a. What is the NPV of this project? The NPV is $ (Round to the nearest dollar.) raised in this way-that is, what is the initial market value of the unlevered equity? The initial market value of the unlevered equity is $ (Round to the nearest dollar.) market value of the levered equity according to MM? The cash flow of the levered equity in a weak market at the end of year 1 is $ (Round to the nearest dollar.) The cash flow of the levered equity in a weak market at the end of year 1 is $ (Round to the nearest dollar.) The initial market value of the levered equity according to MM is $ (Round to the nearest dollar.)