I. Suppose that on January I, 2017 the level of the capital stock for a firm is $100,000.The desired level is given by $200,000. If the firm wants to close 1/2 of the gap eachyear, then find:

(a) The investment the firm made during 2017 and the level of the capital stock onJanuary 1, 2018. (b) The investment the firm made during 2018 and the level of the capital stock onJanuary 1, 2019. (c) If on July 1, 2019 the firm decides its desired capital stock is now given by $1,000,000then find the investment the firm made during 2019 and the level of the capitalstock on January 1, 2020.