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1. i) If the investor has a choice between loan and leasing financing, how would he/she compare between these two sources of financing? ii) Describe the professional sources of equity financing with practical examples. What are the disadvantages of using these sources of financing for a project? 2. A) Identify and describe factors that distort the market for labor. Is the extent of distortion the same in urban and rural areas? Why or why not? B) An investor plans to construct a Post-Consumer Plastic Recycling Factory in Addis Ababa. Make a list of the private costs and benefits and the external costs and benefits associated with the construction and running of the factory.
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