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Consider a firm owned by two shareholders, Sarah Dandridge and Peter Burke.Each owns fifty percent of the firm's equity.The firm has a project available to
Consider a firm owned by two shareholders, Sarah Dandridge and Peter Burke.Each owns fifty percent of the firm's equity.The firm has a project available to it that costs $60,000 and has a payoff of $70,000.The opportunity cost of capital for both shareholders is 15%.Sarah has wealth now of $25,000 and Peter has wealth now of $50,000.What is the most each can consume now given they can lend and borrow as much as they want
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