Profitablity	Payoff (in $ millions)
A	100%	85
B	50%	150
	50%	0
C	10%	350
	90%	30

Zymase is a biotechnology startup firm. Researchers at Zymase must choose one of three different research strategies. The payoffs (after-tax) and their likelihood for each strategy are shown here, (table). The risk of each project is diversifiable

a. Which project has the highest expected payoff? (choose one )

Project A

Project B

Project C

b. Suppose Zymase has debt of $40 million due at the time of the project's payoff. Which project has the highest expected payoff for equity holders? (Choose one)

Project A

Project B

Project C

c. Suppose Zymase has debt of $ 120 million due at the time of the project's payoff. Which project has the highest expected payoff for equity holders? (Choose one)

Project A

Project B

Project C

d. If management chooses the strategy that maximizes the payoff to equity holders, what is the expected agency cost to the firm from having $40

million in debt due? What is the expected agency cost to the firm from having $120 million in debt due?

If management chooses the strategy that maximizes the payoff to equity holders, the expected agency cost to the firm from having

$ 40 million in debt due is $______ million.(Round to the nearest integer.)

The expected agency cost to the firm from having $ 120 million in debt due is $_______ million.(Round to the nearest integer.)