When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _________________ of investing in physical capital.
A. typical hurdle rate
B. opportunity cost
C. degree of risk
D. hurdle rate premium
Answer:B
When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _________________ of investing in physical capital.
A. typical hurdle rate B. opportunity cost C. degree of risk D. hurdle rate premium
Explanation: 69. Which of the following can be thought of as an adjustment for the risks involved with respect to the cost of a firm acquiring financial capital?