Question 2 1 pts A firm is managed by a CEO who maximizes firm value, but only considers tangible costs and benefits (i.e., intangible costs and benefits are ignored). The CEO is considering how many CSR initiatives to take on. Each CSR initiative will produce tangible benefits of $1,000 and intangible benefits of $500. All costs to the CSR initiative are tangible. The first initiative costs $400, the second costs $800, the third costs $1,200, and each additional initiative costs $400 more than the previous. How much value is lost due to the manager's failure to account for the intangible benefits of the CSR initiative? Hint: compute the value that is created from the CSR initiatives while ignoring intangible benefits and compare it to the value created when accounting for intangible benefits. Recognize that the intangible benefits to CSR exist even if the manager ignores them when making their decision. o $500 o $600 E o $200 o $300 Question 2 1 pts A firm is managed by a CEO who maximizes firm value, but only considers tangible costs and benefits (i.e., intangible costs and benefits are ignored). The CEO is considering how many CSR initiatives to take on. Each CSR initiative will produce tangible benefits of $1,000 and intangible benefits of $500. All costs to the CSR initiative are tangible. The first initiative costs $400, the second costs $800, the third costs $1,200, and each additional initiative costs $400 more than the previous. How much value is lost due to the manager's failure to account for the intangible benefits of the CSR initiative? Hint: compute the value that is created from the CSR initiatives while ignoring intangible benefits and compare it to the value created when accounting for intangible benefits. Recognize that the intangible benefits to CSR exist even if the manager ignores them when making their decision. o $500 o $600 E o $200 o $300