1. You have started a neighborhood cat wash service. You expect to wash 10 cats per month at a cost of $20 per cat. The soap and other supplies will cost $2 per cat. It will cost you $150 to invest in a wash tub and hose. Assuming that you invest the $150 today and that you operate the business for 3 years, what is the NPV of this investment at a discount rate of 6% APR?
2. I want to use ARDL model with two explanatory variables. Can i take Oil futures price as the dependent variable and the oil price ,oil futures volume as the explanatory variables?