Question
You have an income of $4,000 in Period 0 and $0 in Period 1. Four different investment opportunities have been given to you, which is
You have an income of $4,000 in Period 0 and $0 in Period 1. Four different investment opportunities have been given to you, which is summarized in the table below:
| Project | Cost | Worth in Period 1 |
| A | $1,500 | $1,620 |
| B | $2,000 | $2,400 |
| C | $1,000 | $1,040 |
| D | $700 | $910 |
If the market interest rate is 11%, what is the optimal investment you can make? What would your consumption be in Period 0 and Period 1 if you take on the optimal set of investments?
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Profit First For Lawn Care And Landscape Businesses
Authors: Christeen Era, Steven A Rigolosi, Mike Michalowicz
1st Edition
0578908158, 978-0578908151
