QUESTION 7 Consider a project with free cash nows in one year of 5137,724 or 5190,092, with each…

QUESTION 7 Consider a project with free cash nows in one year of 5137,724 or 5190,092, with each outcome being equally likely. The initial investment required for the project is 5122,110, and the project’s cost of capital is 20%. The risk free interest rate is 10% What is the NPV of this project? NOTE: Submit your answers with 4 decimals after the dot. Do not include the “s” sign QUESTIONS Consider a project with free cash flows in one year of 5141,988 or $202,922. with each outcome being equally likely. The initial investment required for the project is 5115,819, and the project’s cost of capitalis 21%. The risk free interest rate is 8 Suppose that to raise the funds for the initial investment, the project is sold to investors as an all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this way–that is what is the initial market value of the unlevered equity? NOTE: Submit your answers with 4 decimals after the dot. Do not include the “s” sign