2 5-2 Consider P.V. Ltd., a one-asset firm with no liabilities.Assume that the asset will generate end- of-year cash flows of $121 each year for two years if it is in the bad state.And the asset will generate end-of-year cash flows of $242 each year for two years if it is in the good state. The asset will have zero value in two years.Assume also that the interest rate in the economy is 10% and during each year the bad state and the good state each occur with probability 0.5. Required a.Calculate year 1 and year 2 present value-based amortization.List the calculation process. b.Now the state is bad for year 1.Calculate the asset value of end of year 1.You should consider present value-based amortization. c. Calculate the net income for year 1 under the condition of present value-based amortization. d.Now the state is bad for year 1.Calculate the net income for year 2 under the condition of present value-based amortization