A lot of firms use their own financial resources or funds in order to finance their investments. Imagine that a firm owns P dollars and decides whether to purchase a machine or to put the money in the bank (buy a bond). How many dollars will the firm have TOMORROW if it buys a machine (cookie) today, nails it to the floor, collects the marginal product and sells the output and the remaining of the machine in tomorrow's cookie market? How many dollars will the firm have tomorrow if it buys a bond that delivers the nominal interest rate R? What is the rational rule to make decisions about investment? Will investment depend on r? How? Will investment depend on At? How? Will investment depend on At+1? How? Will investment depend on the depreciation rate, delta? How? Imagine now that the firm DOES NOT have money so that, in order to buy a machine that costs P dollars, it needs to borrow P dollars from the bank. Imagine that the bank chargers R percent to the borrower. A firm that starts with no money and buys a machine TODAY with borrowed money, how many dollars will it have tomorrow after it has paid the debt and the interest back to the bank? What is the rational rule to make decisions about investment? Is it different from the one you found in (c)? Why? Under these new circumstances, Will investment depend on r? How? Will investment depend on At? How? Will investment depend on At+1? How? Will investment depend on the depreciation rate, delta? How