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

answerblank(1) negatively.blank(2); rises; blank(3) falls;

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.