5. Consider the example in Section 3.3 but now assume that the market rate of interest is 10%. Graphically show the operating plan for the following two transformation curves: a) 3K+2K2 30 b) (K + 1)2 + K3 = 221 Using the transformation curve in part (b), find the firm's optimal financing decision if the firm's initial resources at time 1 is: c) 5 d) 0 e) Find the optimal consumption decision assuming the transformation curve in part (b) and further assuming that the only owner of the firm has the following utility function: U(K1, K2) = K K22 5. Consider the example in Section 3.3 but now assume that the market rate of interest is 10%. Graphically show the operating plan for the following two transformation curves: a) 3K+2K2 30 b) (K + 1)2 + K3 = 221 Using the transformation curve in part (b), find the firm's optimal financing decision if the firm's initial resources at time 1 is: c) 5 d) 0 e) Find the optimal consumption decision assuming the transformation curve in part (b) and further assuming that the only owner of the firm has the following utility function: U(K1, K2) = K K22