Question: Now let's consider moral hazard. From the following table find the probability of a high return for Project B that leads to an equal expected

Now let's consider moral hazard. From the following table find the probability of a high return for Project B that leads to an equal expected return for both projects. Assume that the interest rate is 5% and that the startup costs are financed by borrowing. The time period for this question is one year.

Finally, while "return" here really means revenue for this project

Now let's consider moral hazard. From the following table find the probability

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