At what cost of capital would you be indifferent between the two projects based on their NPVs? What is the relevant range of discount rates where you would accept project M and at what discount rates would project T be accepted if they are mutually exclusive?

Consider the following projects with a cost of capital = 14%

Year Project M Project T?
0 -$150,000 -$120,000
1 50,000 72,000
2 90,000 50,000
3 70,000 40,000

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.