QUESTION 11 Use the information in this table to answer parts (a) and (b). Biomass is a biotech firm. The firm has three possible research strategies. Strategy Probability Payoff (in $ millions) 100% 75 B 5096 140 50% 0 1096 300 90% 40 a. Suppose Biomass has debt of $40 M due at the time of the project's payoff. Which project has the highest expected payoff for equity holders? B None of the above None of the above QUESTION 12 Refer to question 11. If management chooses the strategy that maximizes the payoff to equity holders, what is the expected agency cost to the firm from having $40 M in debt due? $20 $5 $10 $25