A company has to make a choice regarding investment opportunity. Each require initial investment of 100. Will invest only in one project:

State	1	2
Probability	0.4	0.3
IO1	220	220
IO2	520	0

Assume its risk neutral and risk-free rate of return (which is correct discount rate for the projects) is 15%.

1. Assume enough internal cash to carry out. Which will the shareholders choose? (please explain in details)
2. Is there a value of p where the shareholders would be indifferent between the choices?
3. We will assume that some investor will fund 40% of the initial i. and demand a payback od 90. Which investment choice will the shareholders choose?
4. Determine maximum amount that the firm will be able to finance with debt without risk-shifting. Keep in mind, potential investors require an interest rate of 19%.

I need this detailed as possible in order to fully understand.