Scarcity of capital

Suppose your firm has limited capital to invest in new R&D. Two lines of innovation (referred to as projects) have been proposed by managers. Project 1 costs $100,000 upfront in costs, but generates $50,000 in additional profits at the end of each of the next 4...

Scarcity of capital

Suppose your firm has limited capital to invest in new R&D. Two lines of innovation (referred to as projects) have been proposed by managers. Project 1 costs $100,000 upfront in costs, but generates $50,000 in additional profits at the end of each of the next 4...