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Question 7 (1 point) Publicly traded Company X stockholders (with limited liability) will decide on choosing one of the two following projects. Initial cost is

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Question 7 (1 point) Publicly traded Company X stockholders (with limited liability) will decide on choosing one of the two following projects. Initial cost is financed with debt (face value=$100). Project A: Initial cost-S100, Cashflow if Boom (50% probability)-S130, Cashflow if Bust (50% probability)=890 Project B: Initial cost-$100, Cashflow if Boom (50% probability=$190, Cashflow if Bust (50% probability)=s10 Same Project B Project A

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