Question: Adam has a project in mind that will require $ 1 0 0 of investment. The project will last for only one year and cease
Adam has a project in mind that will require $ of investment. The project will last for only one year and cease existence after that. Adam has only $ of his own money and he needs to attract the remaining $ by borrowing it from Bob. The loan has a annual interest rate. Suppose that there are four possible scenarios regarding the endofyear cash generated by the business project: $ $ $ and $ Compute rate of return RoR in each scenario for Adam and for Bob.
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