Suppose that instead of having a two-period endowment, Virginia has an initial endowment of $4 million. She decides to invest part of the $4 million in Ginny's Restaurant which she will build and manage. The data below indicates the future cash flows (end of the year) that will result from an investment today. All payoffs are completely certain and known to all. which she will bring and Investment (today) 1.0 million Future Cash Flow (end of year) 1.8 million 2.0 3.3 4.4 3.0 4.0 5.4 2. How much of the $4 million should Virginia invest in the restaurant? What happens to Virginia's wealth when she makes the investment in Ginny's Restaurant? 3. Suppose that Virginia has a strong preference for current versus future consumption, and would like to consume at least $3.8 million immediately. Is this consumption possible, in light of the planned investment in Ginny's Restaurant? 4. Assume that Virginia does not have the $4 million endowment to begin with, but still has the necessary skills to develop and operate Ginny's Restaurant. Should she still make the UILLY Sleslaulall. RI TILIUUULUUI IU LAPIlal III Voleil ValuaCIUIL investment in the restaurant, and if so, how much? Assume that the only source of financing is a bank loan. Individuals are of two types, savers and spenders. While all individuals prefer current consumption to future consumption, all other things equal, spenders have a relatively higher