You have just been hired as the new CFO of Vandelay Industries, a small business that specializes in the production of widgets. The firm's president and CEO (who is also the founder) would like your thoughts on using debt to finance an expansion project (which, based on the previous CFO's work, seems to have a positive NPV). The firm currently has no debt. You ask the firm's bookkeeper for a little background and are told that the CEO really wants to expand and has no qualms about borrowing money to do so; but that the firm's vice president and COO (who also happens to be the CEO's daughter) is firmly against any borrowing. In five (5) sentences or less, how would you respond to the CEO? What are some factors that need to be considered? (For full points, you should tie your answer back to capital structure theory and/or MM's propositions.)