DDB IMG_3165.jpeg Open with Preview Assume an entrepreneur would like to undertake a project that costs $10 million. The project will have a payoff of $13 million 95% of the time. However, 5% of the time, the project will suffer a loss and will only pay off $5 million. In the event of a loss, the entrepreneur can pay $6 million to "fix" the loss and return the project's payoff to $13 million. Assume that the entrepreneur would like to invest $2 million of his own money into the project and will therefore like to borrow the remaining $8 million. What is firm's expected cash flow if the entrepreneur commits to take remedial action? O $3.1 million O $2.7 million O $2.0 million