36 



MULTIPLE PURPOSE RIVER DEVELOPMENT 



produces a revenue sufficient to cover the operating costs as well as 

 expenditures required to maintain the value of the investment and, 

 additionally, to provide a rate of return. 



Different investment opportunities offer different rates of return. 

 The enterprise seeking maximum profits will estimate the expected 

 revenues and costs, will compute the rates of return, and will rank 

 the possibilities according to this criterion. Granting the assump- 

 tions of the competitive model, the enterprise will then undertake 

 all those possibilities which would add to its profits by yielding a 



O Current consumption DC Y 



FIGURE 8. Effects of Change in Interest Rate on Consumer's Con- 

 sumption-Saving Decision 



