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Suppose there are two potential projects for investment. Project 1 has a certain payoff of $50 in one year, while project 2 has a 50%

Suppose there are two potential projects for investment. Project 1 has a certain payoff of $50 in one year, while project 2 has a 50% chance of generating $100 in one year, and another 50% chance of generating $0 in one year. Suppose the company has an outstanding debt = $50.

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