Question: In this problem, the lender faces a single type of borrower who has a choice between two activities: Project 1 or Ques Project 2. Ques

In this problem, the lender faces a single type of borrower who has a choice between two activities: Project 1 or Ques Project 2. Ques Given the four objective functions and the figure below, answer Question 1-0. Ques Ques 750 Time Elapsed: Attempt dur: Feb 1 Hour, 24 Mi Expected Income/Profit Interest Rate -E(Y1] -E[Y2) -E(ni] -[in2) Expected income from Project 1: Ely1) - 180 - 60i Expected income from Project 2:E(y2) - 225 - 78i Expected profit from the loan to support Project 1: E(pil] - -30 + 60i Expected profit from the loan to support Project 2: B(pi2) - -50 + 35i D Question 1 1 pts IF the lender sets the interest rate at 0.9, what project does the borrower want to take? Project 1 O Project 2 O It can no be determined D Question 2 1 pts IF the lender sets the interest rate at 2.4, what project does the borrower want to take? O Project 1 Q Project 2 Q It can not be determined D Question 3 2 pts Under asymmetric information & monopoly, what interest rate i would be charged in equilibrium? Note: Round your final answer to two decimal places

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