Final answer:
An example of investing in physical capital by a company is purchasing new computer software for the business, a move that upgrades their physical capital and increases productivity for future gains.
Step-by-step explanation:
An example of investing in physical capital by a company would be d) Purchasing new computer software for the business. This type of investment is expected to increase productivity and efficiency in the long term. Physical capital investments can encompass both an increase in the quantity of certain assets or an upgrade to higher quality, more efficient tools.
By investing in new computer software, businesses are enhancing the quality of their physical capital, which can lead to greater output and improved performance. This contrasts with maintaining old assets, which may not contribute to productivity gains. Such investments in the present are crucial for earning higher profits in the future and are part of strategic financial decision-making by the firm.
Firms have various ways to finance these purchases, including using early-stage investment, reinvesting profits, borrowing, or selling stock. The decision on which financing avenue to pursue will depend on the firm's strategic goals and financial situation.