Question
Determine which of the two (2) investment projects your supervisor should choose, given a discount rate of 10% from J P Morgan Chase bank.The first
- Determine which of the two (2) investment projects your supervisor should choose, given a discount rate of 10% from J P Morgan Chase bank.The first project generates a profit of US$ 100,000 in four (4) years, while the second, a profit of US$ 75,000 in six years.
1.1 What is the discount rate or proxy of the discount rate that should be used?
1.2 Determine the optimal investment project at the given discount rate?
1.3 Suppose the discount rate at Bank of America, is 7.5%, which project should be chosen.
2. Discuss the determinants of Demand and Supply and include their relationships with Quantity demanded and Quantity supplied.
3. Discuss the concepts of "Price above equilibrium" and "Price below equilibrium" with respect to 1) their impact on equilibrium, 2) provide an example for each, and 3) what policies are they used to rectify?
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