Consider a project that needs a fixed investment I = \($100\) and that will be successful with gross return y (y > I) with certainty. A risk neutral borrower wants to invest in this project, but she only has private wealth w = \($58\) in cash. Suppose that she goes to a (risk-neutral and competitive) bank in order to borrow the rest (I - w). Suppose that the banker can observe the final return of the project with probability s = 70 percent, but the banker does not know the exact return of the project. If the borrower refuses to repay the money and if the bank knows that the project has yielded a positive return, the bank can seize w. Do you expect that the bank will manage to get repaid in this case?