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Lottie plc has 1,000 of cash at to. It has identified four one-period investment projects as follows (assume that all projects exhibit constant returns to

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Lottie plc has 1,000 of cash at to. It has identified four one-period investment projects as follows (assume that all projects exhibit constant returns to scale). Project Outlay at to Inflow at t1 | 320 336 11 180 216 III 400 452 IV 100 119 In the context of one-period theoretical investment-consumption decision model, which of the following statements is true? A IMU D E If market interest rate is 10%, the firm should invest in all four projects If market interest rate is 12%, the firm should invest in Project I, II and III only If market interest rate is 14%, the firm should invest in Project II and IV only If market interest rate is 16%, the firm should invest in Project IV only If market interest rate is 18%, the firm should invest in none of the 4 projects

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