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Business, 12.09.2019 20:10 punkieladie

Lara allocates wealth between two periods: youth (time 1) and old age (time 2).currently (in her youth) she has $8,000 in cash. she can borrow and lend at the bankat a rate of 15% between time 1 and time 2 (that is, lending $1 in youth will give her$1.15 in old age). her only investment opportunity other than the bank is a projectthat costs $5,000 now in her youth and has a payoff of $6,000 in her old age. what isthe most lara can consume in her old age? assume lara cannot consume a negativeamount in her youth.

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Lara allocates wealth between two periods: youth (time 1) and old age (time 2).currently (in her yo...

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