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Assume a rich and a poor region and two periods ( present and future ) . Consumption in the present is $ 2 0 0
Assume a rich and a poor region and two periods present and future Consumption in the present is $ for the poor region and $ for the rich region; in the future it is $ for the poor region and $ for the rich region. What is the net present value from the poor regions perspective when you use equity weights ie account for equity as discussed in class of a project that pays out nothing in the present, and in the future $ to the rich region and $ to the poor region? You should assume a zero pure rate of time preference for this exercise. Make sure to type in the steps that you followed to arrive at your answers so that we can give partial credit if necessary.
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