Write 3 pages with APA style on Econ 6000. If it has lots of capital and/or cash-on-hand stored up, it doesn’t need to worry as much about its overall assets since it’s got liquidity. 4) Examine the n

Write 3 pages with APA style on Econ 6000. If it has lots of capital and/or cash-on-hand stored up, it doesn’t need to worry as much about its overall assets since it’s got liquidity. 4) Examine the net present value problem illustrated on page 46. Assume the road commissioner is certain that the value of the land will increase to $1.2 million three years from now. If the bond stays stable at 3%, is the investment still a good idea? Show your work. Even if the bond stays stable at 3%, the value of the land increasing to $1.2 million dollars will not pay off. If one divides the profit that would be gained by 3 in order to analyze how much money per year would be made in increasing land value, the investment might not be worth the time because one has to keep in mind the interest on that money cannot be made back, nor does that take into account for inflation. Overall, for the current price, it is not a good buy. 5) Examining the case of LTCM on page 53, pay attention to the characterization of the Russian default as a “sigma 9 event.” LTCM operated for a little over 60 months. If the entire month was described as a “sigma 9” event, what is the possibility of that event happening in any given month? Explain what you think might be problems in trying to estimate the likelihood of events like the Russian default. The chances of a sigma 9 default happening in LTCM on any given month depends upon the degree to which the company is trusted. An issuer will not back some organization it cannot trust. According to Png and Lehman (2007), “A major for investors is the possibility that the issuer will default.