Question: 1.) It is not easy for us to make decisions on economic activities whose consequences are unknowable today. (A.) Knowing this, why do businesses spend

1.) It is not easy for us to make decisions on economic activities whose consequences are unknowable today. (A.) Knowing this, why do businesses spend a large sum of money today on acquiring long-term assets (i.e., investing activities)? (B.) Explain what the cost-benefit analysis is in making investment decisions. That is, explain the relationship between the cost-benefit analysis and the Net Present Value (NPV) calculation. (C.) What is the impact of the monetary policy by the Federal Reserve on the cost-benefit analysis by businesses?

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