The table shows the expected rate of return, R&D spending, and interest-rate cost-of-funds for a hypothetical firm. If interest-rate cost-of-funds rose to 11, the optimal amount of R&D spending would be
A)$35 million.
B)$45 million.
C)$55 million.
D)$75 million.

Question

The table shows the expected rate of return, R&D spending, and interest-rate cost-of-funds for a hypothetical firm. If interest-rate cost-of-funds rose to 11, the optimal amount of R&D spending would be
A)$35 million. 
B)$45 million. 
C)$55 million. 
D)$75 million.

Quizplus · Accepted Answer

The Answer of  The table shows the expected rate of return, R&D spending, and interest-rate cost-of-funds for a hypothetical firm. If interest-rate cost-of-funds rose to 11, the optimal amount of R&D spending would be
A)$35 million. 
B)$45 million. 
C)$55 million. 
D)$75 million.

The Table Shows the Expected Rate of Return, R&D Spending