Rachel owns 100 percent of a gift shop with an equity value of $150,000. If she keeps the shop open 5 days a week, EBIT

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Rachel owns 100 percent of a gift shop with an equity value of
$150,000. If she keeps the shop open 5 days a week, EBIT is
$75,000. If the shop remains open 6 days a week, EBIT increases to
$92,000 annually. Rachel needs an additional $50,000 which she can
raise today by either selling stock or issuing debt at an interest
rate of 7 percent. The principal amount would be repaid at the end
of the fifth year. Ignore taxes. What will be the cash flow for
this year to Rachel if she issues debt, remains open 6 days a week,
and distributes all the residual cash flow to the shareholders?
Multiple Choice
$46,125
$88,500
$65,000
$71,500
$81,500