PowerPlug Corp. is evaluating a project that will cost $400,000 initially and will generate free cash flows of either $440,000 (with a probability of 30%) or $600,000 (with a probability of 70%) in one year.

The risk-free rate is 2% and the project's required return is 12%. Assume perfect capital markets.

Part 1: If the project is the only project of the firm, what is the initial value of equity (in $)?

Part 2: If the company finances 30% of the project by borrowing the initial costs at the risk-free rate, what is the initial value of equity (in $)?