1. Consider the three hypothetical projects shown in Table 22-1. This time, however, suppose that the interest...

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1. Consider the three hypothetical projects shown in Table 22-1. This time, however, suppose that the interest rate is only 2%.

a. Calculate the net present values of the three projects.

Which one is now preferred?

b. Explain why the preferred choice with a 2% interest rate differs from one with a 10% interest rate.

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Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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Question Posted: Oct 16, 2024 09:00 AM

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1. Consider the three hypothetical projects shown in Table 22-1. This time, however, suppose that the interest...

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Macroeconomics In Modules

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