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A firm has debt with face value $80 Million due in a year. The firm has two strategies available to it. If the firm takes
A firm has debt with face value $80 Million due in a year. The firm has two strategies available to it. If the firm takes the safe project, it will be worth $100 Million (with probability 1). If the firm takes the risky project, it will be worth either $160 Million or 0 with equal probability. What is the expected value of the risky project? A. $80 Million B. $70 Million C. $100 Million D. $160 Million What is the
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