Consider a project with free cash flows in one year of $144,107 in a weak market or $189,180 in a strong market. with each outcome being equally likely. The initial investment required for the project is $75,000, and the project's unlevered cost of captal is 17%. The risk-free interest rate is 11% (Assume no taxes or distress costs.) b. Sappose that to taise the funds for the initial investment, the project is sold to investors as an all-equity frm. The equity holders will receive the cash flows of the project in one year a. What is the NPV of this project? How much money can be raised in this way-that is, what is the initial market value of the unievered equity? c. Suppose the initial $75,000 is instead raised by borrowing at the risk-free interest rate. What are the cash flows of the lovered equity in a weak market and a strong market at the end of year 1 , and what is its initial market value of the levered equity according to MM? Assume that the risk free rate remans at its current level and ignore any anbitrage opportunity c. Suppose the ininal $75,000 is instead raised by bortowing at the tisk-free interest rate. What are the cash flows of the levered equity in a weak market and a strong market at the end of year 1 , and what is its initial market value of the levered equity according to MM? The cash flows of the levered equity in a weak market and a strong roaket at the end of year 1 , and the initial market vakue of the levered equity according to MM is (Round to the nearest dollar