) Exhibit 13­3 Gives Data on the Number of Tools

) Exhibit 13­3 gives data on the number of tools a certain firm buys to use in its productionprocess.Assume that the tools are expected to last indefinitely, that operating expenses arenegligible, and that the price of the firm's output is expected to remain constant in the future.At what interest rate would the firm in Exhibit 13­3 choose not to buy any machines?

A) 10%
B) 20%
C) 30%
D) 35%
E) 40%