Incorrect Question 2 A company decides whether and how to induce a manager to put in high effort to increase the chances th succeeds. Unfortunately, the manager's effort is unobservable. The value of a successful project is $2 mill of success given high effort is 0.4; the probability of success given low effort is 0.2. The manager's utility of compensation (measured in millions of dollars), and his disutility from exerting high effort is 0.1. The re the manager is $160,000. To induce high effort, the company should pay the manager $ 390000 in case of a successful p 160000 in case of an unsuccessful project. Hint: write intergers without thousand separators. Answer 1: 390000 Answer 2: 160000