Exhibit 13-4 Exhibit 13-4 Shows Data Gathered by Memo

Exhibit 13-4 Exhibit 13-4 shows data gathered by Memo Co.as it prepares to purchase personal computers for its sales offices.Assume that the personal computers are expected to last indefinitely, that operating expenses are negligible, and that the price of Memo's output is expected to remain constant in the future.As the number of personal computers Memo Co.might purchase increases to 120, the marginal rate of return on that kind of capital will

A) decrease from 24 percent and eventually become negative
B) rise from 24 percent
C) decrease from 24 percent but never become negative
D) remain constant because the price of personal computers is constant
E) remain constant because the increments being considered are constant