Question: year. a) Compute the net present value. NPV=$ Should you invest? YES NO NPV=$ Should you invest now? OYES ONO rate. To reduce the investment

year. a) Compute the net present value. NPV=$ Should you invest?

year. a) Compute the net present value. NPV=$ Should you invest? YES NO NPV=$ Should you invest now? OYES ONO rate. To reduce the investment activity, the Federal Reserve should: increase the interest rate -- based on (a) and (b), higher cost of capital will reduce investment reduce the interest rate - based on (a) and (b), lower cost of capital will reduce investment

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