Question 2: Should a firm invest? (show all your work. Points will be deducted for no work) (20 points) A firm learns a firm has an investment opportunity that will earn future revenue 4 years from now by
$160,000
. The marginal cost of the physical capital today is
$125,000
. The firm makes this investment at an interest rate of
5%
. Using this information answer the questions below Should this frim make this investment? What is the discounted percentage for this investment? Other things being equal, could this investment be made a higher interest rate? Lower? Why, Show with numbers Other things being equal, could this investment be made for longer term? Shorter term? Why?, Show with numbers