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Economic investment consists of spending on new plants, capital equipment, machinery, inventories, construction, etc. The investment decision weighs marginal benefits and marginal costs. The expected

Economic investment consists of spending on new plants, capital equipment, machinery, inventories, construction, etc. The investment decision weighs marginal benefits and marginal costs. The expected rate of return is the marginal benefit, and the interest rate (the cost of borrowing funds) represents the marginal cost. True or False

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