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

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Definitions:

Attended To

Focused on or paid special attention to; involves the allocation of cognitive resources towards specific stimuli or tasks.

Dichotic Listening Task

An experimental task used in psychology to study selective attention and the lateralization of brain function, involving presenting two different auditory messages simultaneously, one to each ear.

Attenuation Theory

A model of attention in which unattended perceptual events are transmitted in weakened form but not blocked completely before being processed for meaning.

Conscious Awareness

The state of being mentally awake and having an active sense of self, environment, and thoughts.