2 types of firms can exist in a market the high type firm and the low type firm. The high type firms assets are actually worth $150 million while the low type firms assets are actually worth $50 million. There are 2 firms in the market. One is high type and the other is low type. Both firms can invest in a project that requires an investment of $50 million and will generate a PV of cash inflows of $100 million. The $50 million investment (if taken) has to be funded by new equity from outside investors. The outside investors do not know the actual value of a firms assets and, hence, do not know which firm is which type. a) Burning money does not, of course, mean setting currency on fire. Give an example of how a firm can burn money. b) Suppose the outside investors believe that the firm that burns $10 million and takes this investment is high type and the firm that does not burn this amount to signal its type while taking this investment is low type. What will be each type of firms optimal decision? Show all calculations. c) From your answer to b), will burning $10 million correctly signal a firms type? If not, is this amount too high or too low?