The table shows the rate of return and R&D spending for a hypothetical firm. Assume the interest-rate cost of funds is 7 percent. What is the optimal amount of R&D expenditures?
A)$30 billion
B)$42 billion
C)$36 billion
D)$48 billion

Question

The table shows the rate of return and R&D spending for a hypothetical firm. Assume the interest-rate cost of funds is 7 percent. What is the optimal amount of R&D expenditures?
A)$30 billion 
B)$42 billion 
C)$36 billion 
D)$48 billion

Quizplus · Accepted Answer

The Answer of  The table shows the rate of return and R&D spending for a hypothetical firm. Assume the interest-rate cost of funds is 7 percent. What is the optimal amount of R&D expenditures?
A)$30 billion 
B)$42 billion 
C)$36 billion 
D)$48 billion

The Table Shows the Rate of Return and R&D Spending