Chapter $14,$ Question $1$c: Consider a project with free cash flows in one year of $$130,000$ or $$180,000,$ with each outcome being equally likely. The initial investment required for the project is $$100,000,$ and the project$$s cost of capital is $20\%.$ The risk$-$free interest rate is $10\%.$

Part C $-$ Suppose the initial $$100,000$ 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 according to MM$?$