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An entrepreneur with initial resources valued at $x

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Consider an entrepreneur with initial resources valued at $x. The entrepreneur has to make an investment decision that has a return described in the following transformation curve
K12 + K22 = 144
(a) What is x?
(b) If K1 = 9, what is the level of investment? What is the cash flow in each period?
(c) If K1 = 9, what is the marginal return?
(d) If r=10%, should the entrepreneur invest more or less than $3?

Reference no: EM13500269

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