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Pregunta 1 30 pts Martha has decided to quit her current job to take a sabbatical. Consequently, Martha has income of $130,000 today (t=0) but
Pregunta 1 30 pts Martha has decided to quit her current job to take a sabbatical. Consequently, Martha has income of $130,000 today (t=0) but will have no income tomorrow (t=1). Martha has access to a competitive capital market in which she can lend and borrow at an interest rate of 14%. For now, Martha has no other investment opportunities. NOTE: The next two questions are independent. If Martha wants to consume $30,000 today (t=0), how much will she consume tomorrow (t=1)? [ Seleccionar ] Now suppose that Martha is offered the following investment projects: Project A B Investment (at t=0) $40,000 $70,000 $20,000 Payoff (at t=1) $47,000 $81,000 $22,000 Martha maintains access to the competitive capital market. What is the maximum possible consumption tomorrow (t=1) for Martha after considering the investment decisions? Ialomain
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