2. Suppose a firm has outstanding debt with a face value of $300. The manager, who wants to maximize the expected gross payoff to equityholders, has a choice between one of two projects.
										Project 1 has a 1% chance of paying off $350, and a 99% chance of paying off $299. Project 2 has a 1% chance of paying off $351, and a 99% chance of paying off $0.
2a. Compute the expected gross payoff of Project 1.
2b. Compute the expected gross payoff of Project 2.
2c. Will the manager choose to undertake Project 1 or Project 2?