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Q2) Think of the entrepreneur with no initial resources (but s/he has a good idea=superior project) case covered in Section 3.1.2 and Figure 3.6. Recall
Q2) Think of the entrepreneur with no initial resources (but s/he has a good idea=superior project) case covered in Section 3.1.2 and Figure 3.6. Recall that this person is living in a "perfect capital market" where the prevailing interest rate is 10%. Also suppose that the entrepreneur's "good idea=superior project" allows her/him to convert an investment worth $1000 at time1 into a payoff of $6000 at time 2 Hint: the material in Section 4.1 is very similar a) Calculate the entrepreneur's MV1 = her/his time1 wealth 15pts b) briefly explain how she/he can achieve this wealth 15 pts
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