Impact on consumption and production opportunities

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Reference no: EM131985939

1. Why the indirect effects have an impact on the consumption and production opportunities of others, but the price of the product does not take those externalities into account?

2. What is the present value? (PV) of an investment that pays ?$40,000 every year for 6 years, starting one year from? today? Assume that the interest rate is 5?% ?APR, compounded quarterly.

What is the present value of this? investment, assuming quarterly? compounding?

Reference no: EM131985939

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