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hello can you resolve the question # 4 ( but I have attached question # 2 as a reference only ). the question from question

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hello can you resolve the question # 4 ( but I have attached question # 2 as a reference only ). the question from question # 4 : What would you expect to be the price that would prevail in this market? Who will produce how much for the market? Explain intuitively.

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Suppose your firm has limited capital to invest in new R&D. Two lines of innovation (referred to as projects) have been proposed by managers. Project 1 costs $100,000 up front, but generates $50,000 in additional profits at the end of each of the next 4 years. Project 2 costs $150,000 in upfront costs, generating and additional 575,000 in profits at the end of each of the next three years. Assume the discount rate is 8%. a) Whatis the net present value of Project 1? b) If your firm can only pursue one of the projects, which should it pursue and why? Explain. c) Suppose that Project 2 results in a patentable innovation, potentially extending the flow of $75,000 in profits. With patent protection the firm would earn $75,000 at the end of each of the next 20 years. What is the net present value of Project 2 with patent protection? 4, Answer the following, assuming the firms in Question 2 above compete as Bertrand duopolists. a) What would you expect to be the price that would prevail in this market? Who will produce how much for the market? Explain intuitively

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