9. Firms invest in capital when the net present value of that investment is positive. Alternatively, we

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9. Firms invest in capital when the net present value of that investment is positive. Alternatively, we can say firms invest when the internal rate of return is larger than the borrowing rate.

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Principles Of Microeconomics

ISBN: 9780691150093

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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