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We wish to start a company which would require an initial investment of SEK 5 0 0 and would generate a cash - flow of

We wish to start a company which would require an initial investment of SEK 500 and would generate a cash-flow of SEK 625 at the end of year 1, with probability 1, and no cash-flows thereafter.
However, we could also invest the funds in a project that requires the same initial investment of SEK 500, and that may pay out either SEK 750, with probability 0.7, or SEK 0, with probabil-ity 0.3, also at the end of year 1, and no cash-flows thereafter.
We have no own funds that we could invest in the company. All agents are risk-neutral, and the rate of return in the capital market is equal to 6%. The financiers would be unable to monitor our use of the funds.
3.1. Would the financiers be willing to lend us the sum to be invested to start the company, at the nominal interest rate of 6%?
3.2. Would the financiers be willing to provide the sum to be invested to start the company in exchange for an equity participation, designed so as to yield to them a rate of return on 6%? Dear Expert, kindly add comprehensive notes and calculations to your presentation. Thank you

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