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The Firm Should Continue Investing

Question 3

Multiple Choice

The firm should continue investing


A) even if the MRPK is equal to its rental cost.
B) only as long as the MRPK is less than its rental cost.
C) up to the point where the MRPK equals its rental cost.
D) only as long as its rental cost is greater than the interest rate.

Correct Answer:

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