Calculate the user cost of capital of a machine that costs $100,000 and depreciates at a rate of 25%, when the nominal interest rate is 4% and the expected inflation rate is 1%.
(a) $3000
(b) $25,000
(c) $28,000
(d) $29,000
Answer: C
Calculate the user cost of capital of a machine that costs $100,000 and depreciates at a rate of 25%, when the nominal interest rate is 4% and the expected inflation rate is 1%.
(a) $3000
(b) $25,000
(c) $28,000
(d) $29,000
Answer: C
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