Currently, Sam has two projects to undertake: P1 & P2. Rudy must borrow $10 for one period. RK is not greedy and will ask Sam to pay 5% interest for one period. The project P1 is risky and both Sam & RK know it. This project may bring $20 next period with 80% probability or it may be worth $6 with 20% probability. Project P2 is not risky. It will be worth exactly $14 after one period.

Fill in the blanks in the following table.

Project	Expected Payoff to RK	Expected Payoff to Sam
P1
P2