Mr. Smith has an income of 340,000 this year and $60,000 next year. He can invest in a project that costs $30000 this year= which generates an income of 836000 next year? 

The market interest rate is 10%? What will be his consumption next year: if Mr. Smith invests in the project and consumes $50,000 this year and has zero net savings at the end of next year?

Answer rating: 100% (QA)

If Mr Smith invests in the project and spends 50000 ... View the full answer