Question: Firms A and B are each considering an unanticipated new investment opportunity that will marginally increase the value of the firm and will also increase

Firms A and B are each considering an unanticipated new investment opportunity that will marginally increase the value of the firm and will also increase the firm's level of diversification. Firm A is unlevered, and firm B has a capital structure of 50% debt. Assuming that the shareholders control the firm, will either firm make the investment?

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