Response to the following questions:
1. Suppose an you have an opportunity to invest $1,000 today an get $1,200 one year from today. If your required rate of return on investments of similar risk is 10%, should you make this investment? Why?
2. Suppose you have the opportunity to invest in a project that provides you with $4,000 every year forever. If you require an 8% return on investments with similar risk, what is the most you would be willing to pay for this project?