When a Firm Is Making a Decision About Whether to Purchase

Multiple Choice

When a firm is making a decision about whether to purchase a new piece of physical capital,it is necessary to evaluate the ________ of services it delivers.The concept of ________ allows the firm to determine how much it would be willing to pay for the new piece of physical capital.

A) stock; present value
B) flow; future value
C) flow; present value
D) stock; future value