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Please help me understand . The graph depicts the current capital market. Move one or both curves to show how the market will change if

Please help me understand .

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The graph depicts the current capital market. Move one or both curves to show how the market will change if rms expect economic growth to dramatically increase. Which statement will be true about rms' capital investment decisions at the new equilibrium? 0 All investments that are expected to yield 0% or more will be undertaken. O The minimum expected return is equal to the new equilibrium interest rate of 3%. 0 Firms will only undertake projects that yield a return less than 4%. 0 Firms will only undertake projects that yield a return greater than or equal to 4%. Interest rate (9%) Savings Divestment demand 2 3 4 5 5 Investment ($ in billions) Dawn and Amelia work for an international advertising Dollars Dollars realized one agency. They are presented with four possible product Campaign realized today year from todayr (in campaigns for the year, of which they must choose only (in thousands) thousands) one. The annual interest rate is 5%. They must choose the Globatel campaign which will be most protable to the company Wireless _17 235 overall. The chart contains the costs and benets for each Yummy of the projects. Use the information in the chart to Tummy 115 - calculate the net present values and answer the questions. Pudding NiCad Electric 60 28 Cars Excelsis Hot Air 50 109 Balloons What is the net present value of the Excelsis Hot Air Balloon campaign (in thousands)? Using your net present value calculations. which 1 55 thousand __ . 1: l

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