please help me to answer all 4 questions, especially #2

Short-sighted investment problem Exhibit 16.2: Applied Textronics Cash Flows We assume the risk free rate is zero. Then the long-term project value exceeds that of the short-term project ($20+$40)>$50. But: If the firm selects the short-term project, it will have enough funds to meet the debt payment due in year 1. It will default in the unfavorable state in year 2 ($10