If the interest rate is 5 percent, what is the current value of $110 to be received one year from now?

Property rights uncertainty will usually cause

a. lower levels of investment spending. b. lower levels of real interest rates. c. higher levels of investment spending. d. higher levels of real interest rates.

The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. An industry spy comes to firm B and claims to know what firm A has decided. Given that each firm already knows the payoff matrix, how much would this information be worth to firm B?

A. $0. B. $50 million. C. $70 million. D. $30 million.