Sheaves Corporation economists estimate that a good business environment and a bad business environment are equally likely for the coming year. Management must choose between two mutually exclusive projects. Assume that the project chosen will be the firm's only activity and that the firm will close one year from today. The firm is obligated to make a $3,600 payment to bondholders at the end of the year. The projects have the same systematic risk, but different volatilities. Consider the following information pertaining to the two projects: Low High Volatility Volatility Economy Probability Project Payoff $3,600 3,850 Project Payoff $3,000 4,450 Bad Good .50 .50 a. What is the expected value of the firm if the low-volatility project is undertaken? What if the high-volatility project is undertaken? (Do not round intermediate calculations and round your answers to the nearest whole dollar, e.g., 32.) Expected value of the firm Low-volatility project value High-volatility project va lue 3725 3725 b. What is the expected value of the firm's equity if the low-volatility project is undertaken? What is it if the high-volatility project is undertaken? (Do not round intermediate calculations and round your answers to the nearest whole dollar, e.g., 32.) Expected value of the firm's equity Low-volatility project value125 High-volatility project value