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Mr. Cobb has an income of $55,000 this year and will have $60,000 next year. He can invest in a project that costs $45,000 this
Mr. Cobb has an income of $55,000 this year and will have $60,000 next year. He can invest in a project that costs $45,000 this year, which generates an income of $51,000 next year. The market interest rate is 10 percent. What will be available for his consumption next year if Mr. Cobb invests in the project and consumes $81,500 this year? Multiple Choice $55,000 $32,350 $90,000 $42,350
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