An investment offers the following year-end cash flows: end of year cash flow 1 0 2 $20,000 3 $30,000 4 $15,000 5 -$2,000 a. how much would you be willing to pay for this investment today if your opportunity cost was 10%? (5 points) b. using a 10 percent discount rate, convert this series of irregular cash flows to an equivalent (in present value terms) 5-year annuity. (5 points)

Agood for which demand increases as income rises is and a good for which demand increases as income falls is

Consider the following scenarios. use what you have learned to decide if the goods and services being provided are individual, public, or merit goods. for each case, state what kind of good has been described and explain your answer using the definitions of individual, public, and merit goods. (6 points each) 1. from your window, you can see a city block that's on fire. you watch city firefighters rescue people and battle the flames to save the buildings. 2. while visiting relatives, you learn that your cousins attend a nearby elementary school that is supported financially by local property tax revenue. 3. you see a squadron of military jets flying overhead. 4. you find out that your aunt works for a defense manufacturing company that has several defense contracts with the government. she tells you that she works for a team that is producing a communications satellite. 5. your class visits a local jail run by a private, profit-making company that detains county criminals and is paid with tax revenue.

True or false entrepreneurs try to meet the needs of the marketplace by supplying a service or product