Finance >T

Hey :) 

I am really struggling with a corporate finance task from my book, the question goes like this 

Consider the company MXK that generates the following risky cash flow: With probability ½ the company is in a boom next year and free cash flow equals $50. With probability ½ the company is in a recession next year and free cash flow equals $150. MXK has a debt obligation that is due next year with a face value of $100. Suppose that the manager is the sole equity owner of the company. Everyone is risk neutral and there is no discounting.

a. Calculate the present value of MXK’s debt and equity claims.

b: MXK can undertake an investment project that requires an investment of $24. If this project is undertaken, the company’s cash flow increases from $150 to $180 in a boom, and from $50 to $80 in a recession. What is the NPV of this investment project? Suppose the manager considers financing the project by selling an equity to new investors in a competitive stock market. What is the manager’s payoff if he issues equity and undertakes the project? Would he want to do this? Discuss.

in the solutions for the a, they are saying equity = 25 and debt = 75 without any explanation. 

for the b task, i dont know how to start. 

Does anyone have some tips? thank you!