Question 26 1 points Save Answe "Consider a corporation that faces the following 3 mutually exclusive 1-period projects, each of which requires a $100 investment. The firm has $100 in cash and no other assets. The interest rate is 0. The end-of-period cash flows are given below. Which project would shareholders prefer if the firm has outstanding debt with face value of $40 due in one period?" Project 1 Project 2 Project 3 CF CF CF Probability 0.5 Strong economy $120 $200 $170 $40 Weak economy 0.5 $90 $10 O Project 2 O "Indifferent between the projects, which are all acceptable" O Project 1 O None of the projects is acceptable O Project 3