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Now let's consider moral hazard. From the following table find the probability of a high return for Project B that leads to an equal expected

Now let's consider moral hazard. From the following table find the probability of a high return for Project B that leads to an equal expected return for both projects. Assume that the interest rate is 5% and that the startup costs are financed by borrowing. The time period for this question is one year.

Finally, while "return" here really means revenue for this project

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