Please use a file sharing website and submit a link to an excel spreadsheet which shows the spreadsheet calculating the results for question 1-4 and all of their parts. Thank you!

1. Consider a project with free cash flows in one year of $130,000 or 5130.000, with each outcome being equally likely. The initial investment required for the project is $100,000, and the project's cost of capital is 2096. The risk-free interest rate is 1096' a. What is the Met this project? 1:. Suppose that to raise the fluids for the initial investment, the project is sold to investors asanail-equity rm. The equity holders will receive thecash flowsof the project in one year. How much money can be raised in this naytint is, what is the initial market value of the unlevered equity? c. Suppose the initial $100,000 is instead raised by borrowing at the risk-free inter- est rate. What are the cash ows otthe levered equity. and what is its initial value according to HM? 2. You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $30 million. If your research is unsuccessful, it will be worth nothing. To fund your research, you need to raise $2 million. Investors are willing to provide you with $2 million in initial capital in exchange for 50% of the unlevered equity in the firm. a. What is the total market value of the firm without leverage? b. Suppose you borrow $1 million. According to MM, what fraction of the firm's equity must you sell to raise the additional $1 million you need? c. What is the value of your share of the firm's equity in cases (a) and (b)?3. Acort Industries owns assets that will have an 80% probability of having a market value of $50 million in one year. There is a 20% chance that the assets will be worth only $20 million. The current risk-free rate is 5%, and Acort's assets have a cost of capital of 10%. a. If Acort is unlevered, what is the current market value of its equity? b. Suppose instead that Acort has debt with a face value of $20 million due in one year. According to MM, what is the value of Acort's equity in this case?*4. Suppose there are no taxes. Firm ABC has no debt, and firm XYZ has debt of $5000 on which it pays interest of 10% each year. Both companies have identical projects that generate free cash flows of $800 or $1000 each year. After paying any interest on debt, both companies use all remaining free cash flows to pay dividends each year. ABC XYZ FCF Debt Payments Equity Dividends Debt Payments Equity Dividends $ 800 $1000 aur a. Fill in the table above showing the debt payments and equity dividends each firm will receive given each of the two possible levels of free cash flows