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Question 15 (1 point) Gap Designs is an insolvent company: Its balance sheet shows the...

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Question 15 (1 point) Gap Designs is an insolvent company: Its balance sheet shows the book value of debt is $1,100 and the market value of assets (which consists of cash) is $800. The firm is considering investing in a one-year project that costs $1,000 today and provides a cash inflow of $1,200 at the end of the project. The discount rate is 10%. The firm will use all its cash for the project. Calculate the net present value to bondholders if the firm goes ahead with the project. $100 $200 $300 $800 -$109.09

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