1. Does a society subject to the Rule of Law (everyone governed by the law, not just monrachs or rulers) make it more likley to have a prosperous middle class over time? If so, how?
2. Fred is considering the purchase of a lease that will allow him to operate a restaurant at the local airport for a period of five years. The lease will cost $32,000 annually along with monthly operation costs of 8,000. Fred anticipates monthly revenues of $16,000. Calculate the PV of the expected profits of the investment? Assume I = 0.05.