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For the disaster risk decision tree model, explain why an increase in S and an increase in U have the opposite impact on the choice of how many suppliers to use. What is the implication of these two phenomena taken together?
Interest Rate
The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
Capital Budget
An estimate of the major capital and investment expenditures over a period, and the means of financing them.
Cost of Capital
The cost of a company's funds (both debt and equity), representing the rate of return that the company must earn on its investment projects to maintain its market value.
Investment Opportunities
Chances or avenues available to investors to put their money into vehicles with the potential for generating profit.
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