For a firm choosing not to purchase its own stock of capital, total rental costs include which of the following?
A) The purchase price of the new piece of capital
B) The real interest rate
C) The rate of depreciation
D) All of the above
E) Only b and c

Question

Quizplus · Accepted Answer

Total rental costs include the purchase price of the new piece of capital, the real interest rate, and the rate of depreciation.

For a Firm Choosing Not to Purchase Its Own Stock