Assume that a firm's Foreign Direct Investment (FDI) strategy has a required rate of return of 20% p. a. The initial investment is $2,000,000, and the firm expects end-of-year earnings of $1,250,000 each year for three years. What is the net present value (NPV) of the firm's FDI strategy? a. $2,633,102 b. $2,962,963 c. $3,750,000 d. $1,750,000

11. problems and applications q11 consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoup the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40.