Question: Assume all risks involved in this question are idiosyncratic ( firm - specific ) so investors discount rate is always the risk - free rate,

Assume all risks involved in this question are idiosyncratic (firm-specific) so investors discount rate is always the risk-free rate, 10%. A firm currently has two assets: $60 million cash and a risky investment project A that lasts for one year. It also has $121 million debt payment due next year. The firm faces an additional risky investment B that also lasts one year, which requires initial investment of $60 million today.Scenario 1(50%)Scenario 2(50%)Assume all risks involved in this question are idiosyncratic (firm-specific) so investors' discount rate is always the risk-free rate, 10%. A firm currently has two assets: $60 million cash and a risky investment project A that lasts for one year. It also has $121 million debt payment due next year. The firm faces an additional risky investment B that also lasts one year, which requires initial investment of $60 million today.
\table[[Scenario 1(50%),Scenario 2(50%)cash flow of Project A$110 mil $44 milcash flow of Project B$77mil $33 milIf the managers objective is to maximize firm value, will they invest in project B?If the managers objective is to maximize shareholder value, will they invest in project B? Please explain.
 Assume all risks involved in this question are idiosyncratic (firm-specific) so

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