The table shows the expected rate of return, R&D spending, and interest-rate cost-of-funds for a hypothetical firm. Based on the information given, the optimal amount of R&D spending would be
A)$0 million.
B)$75 million.
C)$65 million.
D)$55 million.

Question

The table shows the expected rate of return, R&D spending, and interest-rate cost-of-funds for a hypothetical firm. Based on the information given, the optimal amount of R&D spending would be
A)$0 million. 
B)$75 million. 
C)$65 million. 
D)$55 million.

Quizplus · Accepted Answer

The Answer of  The table shows the expected rate of return, R&D spending, and interest-rate cost-of-funds for a hypothetical firm. Based on the information given, the optimal amount of R&D spending would be
A)$0 million. 
B)$75 million. 
C)$65 million. 
D)$55 million.

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