% P14-1 (similar to) Question Help Consider a project with free cash flows in one year of $147,700 or $170,400, with each outcome being equally likely. The initial investment required for the project is $5,300, and the project's cost of captalis 20%. The risk-free interest rate is 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 as an l-equity frm. The equity holders will receive the cash fows of the project in one year. How much money can be raised in way that is what is the initial market value of the unlevered equity? c. Suppose the initial 95,300 is instead raised by borrowing at the risk-free interest rate. What are the cash flows of the levered equity, what is its initial value and what is the wal equity according to MM? a. What is the NPV of this project? The NPV is $ (Round to the nearest dollar)