1. (30 points) Consider a problem with a principal and an agent. The principal gets a value of 2 if the project is completed successfully and a value 0 if it is not successful. The agent selects an effort level 7* which is the probability of the project's success. Note 1 2 r 2 0. The agent pays an effort cost equal to *r. The principal cannot give the agent negative payments. How much should the principal pay for a success? for a failure? [an . .' . n