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Analyze the following. a. How does the international price elasticity of demand for exports affect profitability of an investment? b. Let us say, we borrow

Analyze the following. a. How does the international price elasticity of demand for exports affect profitability of an investment? b. Let us say, we borrow 80% of a capital budgeting project costing $100 million. That means we use equity of $20 million. We also need additional labor to set up the project. The cost of that is $7. What is the total cost of this investment? c. We invest in a foreign land $ 80 million. The host government provides a subsidy for us of $30 million in equivalent foreign money. What is our investment?

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