When a firm makes plans for investments in physical capital, it compares the _______________ on these investments with ______________________ .
A. projected rates of return; the cost of financial capital to the firm
B. present inputs of physical capital; future hurdle rates
C. present inputs of physical capita; future marginal revenue product
D. projected rates of return; the competitive pressures for labor
Answer:A
When a firm makes plans for investments in physical capital, it compares the _______________ on these investments with ______________________ .
A. projected rates of return; the cost of financial capital to the firm B. present inputs of physical capital; future hurdle rates C. present inputs of physical capita; future marginal revenue product D. projected rates of return; the competitive pressures for labor