Atlas Bolt and Lotto company began the year with Total Assets =$100,000 (all cash): Total Liabilities equal to $70,000 (all bank borrowings) and Shareholder Equity equal to $30,000. The managers of Atlas will be investing all $100,000 into only one of the following four projects and then will liquidate at the end of the year. The expected payoff to each project is listed below: Project 1: Guaranteed Payoff of $60,000 Project 2: 60% chance of a $70,000 payoff ane 40% chance of a $50,000 payoff Project 3:30% chance of a $90,000 payoff and a 70% chance of $30,000 payoff Project 4:10% chance of $120,000 payoff and 90% chance of a $10,000 payoff Project 4: 10% chance of $120,000 payoff and 90% chance of a $10,000 payoff Assume that shareholders and bankers are both risk neutral. Which of the four projects would the shareholders prefer the Atlas managers invest in? a. Project 3 b. Project 2 c. Project 1 d. Project 4 QUESTION 10 If a bank loan officer were considering a company's loan request, which of the