Managers to understand the mechanics of demand

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Reference no: EM1321320

Q. Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent (%) or more but that there are $5 billion of investment opportunities with an expected rate of return among 20 also 25 percent (%), an additional $5 billion among 15 also 20 percent (%) also so on. If the real interest rate is 15 percent (%) in this economy the cumulative amount of investment will be:

Q. Elucidate why it is important for managers to understand the mechanics of demand also supply in both short-run also long-run?

Reference no: EM1321320

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