The Table Below Sets Out the Amount of Capital Needed

question 1

Multiple Choice

The table below sets out the amount of capital needed for certain investment projects and the rate of return for each project. What is this firm's demand for physical capital if their hurdle rate is 8%?

• A) $1.5 million
• B) $2 million
• C) $250,000
• D) $500,000

---

Definitions:

Chinese-American

Pertains to individuals in the United States who are of Chinese descent, involving their culture, heritage, and community.

Cuban-American

A person of Cuban descent who is a citizen or resident of the United States.

Rite Of Passage

A ceremony or event marking an important stage in someone's life, especially birth, puberty, marriage, and death.

Van Gennep

Arnold van Gennep was a French ethnographer and folklorist best known for his work on rites of passage and the structure of rituals.