Q1. Suppose that people consume only three goods, as shown in the table:
tennis balls golf balls bottle of gatorade
2009 price $2 $4 1$
2009 quantity 100 100 200
2010 price 2 6 2
2010 quantity 100 100 200
what is the percentage change in the price of each of the three goods?
Q2. Assume that a U.S. firm plans to invest £200 million for a project in U.K., and the firm estimates the following values: the value of an unlevered project (Vu) = £150 million and PV(financing side effects) = £75 million. Find the present value of this project by using the Adjusted Present Value (APV) formula