Question: Exercise 7 Consider the fixed investment model analysed in class. An entrepreneur has cash A and wants to invest I > A in a project.

Exercise 7 Consider the fixed investment model analysed in class. An

Exercise 7 Consider the fixed investment model analysed in class. An entrepreneur has cash A and wants to invest I > A in a project. The project yields R$ > 0 with probability p and RF A in a project. The project yields R$ > 0 with probability p and RF

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