1. (5%) Consider a world with two points in time, to and ti, Cynthia Sopwith inherits $5 million at to. She has two projects she can invest this inheritance in at to. Project A costs $900,000 at to and yields S1,150,000 at ti. Project B costs $1,900,000 at to and yields $2,120,000 at t. She can also lend and borrow at a bank at an interest rate of 15 percent. Cynthia is only interested in consumption at tii she does not get any utility from consumption at to (a) Which projects should Cynthia undertake? What is the most Cynthia can consume at t1? How much does she need to lend or borrow at the bank to achieve this level of consumption? (b)