Capital budgeting projects typically assume that all cash flows transpire at the end of the year. the reason for this is that: balance sheets are prepared at the end of the year. it simplifies the analysis and the resulting errors are usually small compared with the errors in forecasting future cash flows. less tax liability results from this practice. most corporations collect their cash at the end of the year.

David consumes two things: gasoline (q 1) and bread (q 2). david's utility function is u(q 1, q 2)equals70q 1 superscript 0.5 baseline q 2 superscript 0.5. let the price of gasoline be p 1, the price of bread be p 2, and income be y. derive david's demand curve for gasoline. david's demand for gasoline is q 1equals nothing. (properly format your expression using the tools in the palette. hover over tools to see keyboard shortcuts. e.g., a subscript can be created with the _ character.)