1. Project A and B are both available to BetaGo. The initial costs are 00A = 100 and 0.33 = 300 for A and B, respectively. Project A alone will generate a cash ow 02A = 242 at 132, and project B alone will generate a cash ow 013 = 484 at 2. But A and B are not independent. Indeed, if BctaGo invests in both A and B, it can receive an extra 121 cash ow (the synergy) at t2. (a) If BctaGo can invest in either A or B, which one will BetaGo choose? (b) If BctaGo can invest in both A and B, will BetaGo invest in both projects? Suppose that the manager of BctaGo has limited attention. Hence, if she invests in A and B at the same time, she cannot do a good job. In particular, if she invests in both A and B at to, 02A becomes 181.5, and 023 becomes 353. (The synergy will still be generated.) (c) What is the optimal project choices now