Question: Question 3: Project Decision under Asymmetric Information In the lecture note part I, now suppose the firm has an opportunity to do a project which

Question 3: Project Decision under Asymmetric Information In the lecture note

Question 3: Project Decision under Asymmetric Information In the lecture note part I, now suppose the firm has an opportunity to do a project which costs $100 M, and has payoffs of: $99 M next period if Bad state occurs, and $184 M next period if Good state occurs. (a) Fill in the following table and find present value of payoff to equity

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