1. What is an optimal contact?
2. You are sole owner of the company. By year's end, your company has an equal chance of being worth either $12,000 or $8,000. Your debt is $10,000 and due at the end of the year. You have a chance to invest in a project that will enhance your company. If you choose this project then by year's end your company will have an equal chance of being worth either $11,000 or $9,500. What is the NPV of this project?
3. Discuss factors to be considered in international capital budgeting decision.