KEY QUESTION Answer the following lettered questions on the basis of the information in this table: a.
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KEY QUESTION Answer the following lettered questions on the basis of the information in this table:
a. If the interest-rate cost of funds is 8 percent, what will be the optimal amount of R&D spending for this firm?
b. Explain why $20 million of R&D spending will not be optimal.
c. Why won’t $60 million be optimal either?
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