Problem
An investor has two opportunities. An investment project in country A involving an initial investment of $100,000 and an income of $30,000 for six years, or, an investment project involving an initial investment of $150,000 in the US with an annual income of $60,000 for three years. By how many inflation adjusted US dollars would this investor be better or worse off, if he invests in the country A project compared to the US project. The prevailing rate of interest in both countries is 15%. Assume that
a. The rate of inflation in the US is constant at 5.5%, and the inflation rate in country A is constant at 4.545 per year.
b. The rate of exchange between the US and country A currency remains the same. Disregard social, stability, economic, and other conditions.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.