Sunburn Sunscreen has a zero coupon bond issue outstanding with a $10,000 face value that matures in one year. The current market value of the firm's assets is $10,900. The standard deviation of the return on the firm's assets is 31 percent per year, and the annual risk-free rate is 6 percent per yeat, compounded continuously. The firm is considering two mutually exclusive investments. Project A has an NPV of $2,400, and Project B has an NPV of $2,800. As the result of taking Project A, the standard deviation of the return on the firm's assets will increase to 49 percent per year. If Project B is taken, the standard deviation will fall to 26 percent per yeac. a-1. What is the value of the firm's equity and debt if Project A is undertaken? (Do not round intermediate calculations and round your answers to 2 decimal places, e.9., 32.16.) a-2. What is the value of the firm's equity and debt if Project B is undertaken? (Do not round intermediate calculations and round your answers to 2 decimal places. e.a. 32.16 .1 o-2. What is the value of the firm's equity and obbt if Project B is undertaken? (Do not round intermediate calculations and round your answers to 2 decimal places, e.9., 32.16.) b. Which project would the stockholders prefer? Project A Project B b. Which project would the stockholders prefer? Project A Project B c. Suppose the stockholders and bondholders are in fact the same group of investors. Would this affect your answer to (b)? Yes No