Question 5 3 points Save Answer Dark Creek Corporation's CEO is selecting between two mutually exclusive projects. The company is obligated to make a $3,600 payment to bondholders at the end of the year. To minimize agency cost, the firm's bondholders decide to use a bond covenant to stipulate that the bondholders can demand an additional payment if the company chooses to take on the high-volatility project. How much additional payment to bondholders would make stockholders indifferent between the two projects? Cash flows pertaining to the two projects are shown in the table below. Economy Probability Bad .40 Good .60 $1166.67 Low-Volatility Project Payoff $4,000 4,800 High-Volatility Project Payoff $2,900 6,300 $1366.67 $1233.33 $1300.00