In General,a Profit-Maximizing Firm Will Purchase a Piece of Capital

Multiple Choice

In general,a profit-maximizing firm will purchase a piece of capital equipment if the

A) present value of the stream of future MRPs exceeds the purchase price.
B) present value of the stream of future MRPs falls below the purchase price.
C) simple sum of the future MRPs exceeds the purchase price.
D) simple sum of the future MRPs falls below the purchase price.
E) future value of the stream of MRPs exceeds the purchase price.