A company with $200,000 initial endowment has the following investment opportuni
A company with $200,000 initial endowment has the following investment opportunities available: Project I1 X2 1 $150,000 $180,000 2 $125,000 $140,000 3 $160,000 $175,000 4 $55,000 $70,000 Assuming perfect certainty, perfect capital markets, rational investors, a two-period world, and a market rate of 15%, answer the following questions: a. If the firm applies capital rationing […]