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A. If the real rate of interest is 10%, what is the net present value of a project with net benefits, measured in constant dollars,
A. If the real rate of interest is 10%, what is the net present value of a project with net benefits, measured in constant dollars, equal to -$1400.00 in year 0 and $600.00 in each of the next three years? (Show your calculations.) B. Suppose there is no inflation and an insurance company offers a contract that would pay $500,000 with certainty 50 years from now. What is the most that this contract would be worth today if: 'I. The rate of interest is 7%. 2. The rate of interest is 3%. C. Suppose that you are considering planting some Douglas fir trees this year that will be harvested in 80 years. There is no inflation, the real rate of interest is 10%, and the cost of planting each tree is $4.00. What would each tree be worth at the time of harvest
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