QUESTION 5. [3 points] Company X stockholders will decide on choosing one of the two following projects. Initial Cost Cashflow in Boom (30% probability) Cashflow in Bust (70% probability) Project A $330 $110 Project B $270 $180 5-1. If the Project initial cost, C, is $150 which is financed by debt, which project will be chosen by stockholders? 5-2. If the Project initial cost, C, is over ($ stockholders. Fill in the blank which is financed by debt, the riskier project will be chosen by $ 5.3. With increasing debt, shareholders often have incentives to take riskier projects over sate projects. This problem is referred as QUESTION 5. [3 points] Company X stockholders will decide on choosing one of the two following projects. Initial Cost Cashflow in Boom (30% probability) Cashflow in Bust (70% probability) Project A $330 $110 Project B $270 $180 5-1. If the Project initial cost, C, is $150 which is financed by debt, which project will be chosen by stockholders? 5-2. If the Project initial cost, C, is over ($ stockholders. Fill in the blank which is financed by debt, the riskier project will be chosen by $ 5.3. With increasing debt, shareholders often have incentives to take riskier projects over sate projects. This problem is referred as