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(2+1 marks) Jim Mal owns currently two cargo aircrafts with a market value of $250 million dollars each. Unfortunately, Jim has $600 million in debt

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(2+1 marks) Jim Mal owns currently two cargo aircrafts with a market value of $250 million dollars each. Unfortunately, Jim has $600 million in debt coming due at the end of the year. Allan Musk has offered Jim a mining opportunity on Moon in exchange for one of the aircrafts. If Jim accepts the deal, there is a 10% chance that he finds diamonds on the Moon which would be worth $1.2 billion, a 15% of finding gold on Moon that would be worth $750 million, and a 75% chance that he will find neither. a. What is the expected payoff to the debt holders if he accepts the offer? b. Ignoring the debt maturing at the year-end, will Jim accept the exchange offer

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