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

Question 105

Multiple Choice

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, 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.

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