Using Old Capital Goods, Such as Machinery and Computers

Multiple Choice

Using old capital goods, such as machinery and computers:

A) is not a good idea since firms have to use the newest technology if they are to compete successfully in the market place.
B) may work if accompanied with the necessary skills in terms of labour.
C) is a valid strategy if their prices are low enough for the rate of return to rival the one for newer capital goods.
D) is not an option in today's world given the tremendous value built in the newer machines.