Homo sapiens production possibilities curve

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Q1. Your employer asks you to calculate the present value for a project that will result in an immediate financial return of $100, a return of $200 after one year, and a return of $300 in the second year. Assuming you use 7% as the interest rate and 3% as the rate of expected inflation, what is the present value?

Q2. Why might the Homo sapiens production possibilities curve have shifted outward to the right much more rapidly than those of Neanderthals?

 

Reference no: EM138771

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