We now know how to compute the NPV of state-contingent payoffs—our building paid off differently in the two states of nature. Thus, our building was a state-contingent claim—its payoff depended on the outcome. But it is just one of many. Another state-contingent claim might promise to pay $1 if the sun shines and $25 if a tornado strikes. Using payoff tables, we can work out the value of any state-contingent claims—and in particular the value of the two most important state-contingent claims, debt and equity.