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

Question 306

Multiple Choice

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 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

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