Question: Consider a project with a single risky cash flow in one year. The CF will be either $20,000 (with probability 0.1) or $2,000 (with probability

"Consider a project with a single risky cash flow in one year. The CF will be either $20,000 (with probability 0.1) or $2,000 (with probability 0.9). All investors are risk neutral. The interest rate is 0. What will be the value of equity if a firm with no other cash flows but $5,000 in face value of outstanding debt takes this project?"

A. "$1,500"

B. "$3,000"

C. "$4,500"

D. "$7,500"

E. "$6,000"

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