1. Consider a project with free cash flows in one year of $137,022 or $188,017, with each being equally likely. The initial investment required for the project is $100,655, and outcome the project's cost of capital is 20%. The risk-free interest rate is 11% a. What is the NPV of this project? b. Suppose that to raise the funds for the initial investment, the project is sold to investors all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money unlevered equity? c. Suppose the initial $100,655 is instead raised by borrowing at the risk-free interest rate. What are the cash flows of the levered equity, and what is its initial value accord ing to MM as an can be raised in this way-that is, what is the initial market value of the