Sunburn Sunscreen has a zero coupon bond issue outstanding with a $20,000 face value that matures in one year. The current market value of the nn's assets is $22,300. The standard deviation of the retum on the rm's assets is 34 percent per year, and the annual risk-free rate is 4 percent per year, compounded continuously. The rm is considering two mutually exclusive investments. Project A has an NP'v' of $2,?, and Project E has an NP'v' of $3,600. As the result of taking Project A, the standard deviation of the retum on the rrn's assets will increase to 39 percent per year. If Project B is taken, the standard deviation will tail to 22 percent per year. :14 What is the value ol the nTI's equity and debt if ProjectA is undertaken? {Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.] Market value Equity $ Debt $ :12 What is the value ol the nTI's equity and debt if Project B is undertaken? {Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.] Market value Equity 95 Debt $ b. Which project would the stockholders prele r? O ProjectA O Project B c. Suppose the stockholders and bondholders are in fact The same group of investors. Would this aect your answer to (b)? O Yes O No