Question: Can you explain why? I already know the answer but just wonder how to solve it. If the firm undertakes Project (I1: $121,800 and X2:

Can you explain why? I already know the answer but just wonder how to solve it.

If the firm undertakes Project (I1: $121,800 and X2: $152,250)

and Pays D1 = $378,200 and D2 = $152,250,

how much can the owner of 20% of the firm consume in period 1 if they want to consume $38,150 in period 2?

The answer is $ 68,640

Why?

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