Effects of imperfect information also asymmetric information

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Q1. Explain why do interest rates differ? Explain why isn't the prime rate available to everyone?

Q2. Assume a third project will cost $20,000 today also yield a return of $2,500 a year indefinitely. Illustrate is the present value of the project? Illustrate is the present value if the interest rate increases to 20 percent?

Q3. Illustrate economic differences are there between the effects of imperfect information also asymmetric information?

Reference no: EM139831

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