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QUESTION
14-1. Consider a project with free cash ows in one year of $130,000 or $180,000, with each outcome being equally likely. The initial investment
how to get 20,000 and 70,000 in question c, and why the initial value of levered firm is 29,167, but the unlevered firm values id 129,167.
under no tax, value of unleverd firm should be equals value of leverd firm?
