Sunburn Sunscreen has a zero coupon bond issue outstanding with a face value of $28,000 that matures in one year. The current market value of the firm's assets is $29,900. The standard deviation of the return on the firm's assets is 34 percent per yearand the annual risk-free rate is 5 percent per year, compounded continuously. The firm is considering two mutually exclusive investments. Project A has an NPV of $2,300and Project B has an NPV of $3,200. As the result of taking Project A, the standard deviation of the return on the firm's assets will increase to 51 percent per year. If Project B is taken, the standard deviation will fall to 31 percent per year.

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.g., 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.g., 32.16.)