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what is the value of the firm's equity at time 0 if the high volatility project is undertaken? Situation Probability Low Volatility Project Payoff High

what is the value of the firm's equity at time 0 if the high volatility project is undertaken?

Situation Probability Low Volatility Project Payoff High Volatility Project Payoff

BAD 0.6 2,500,000 1,400,000

GOOD 0.4 3,750,000 5,250,000

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