Multiple Choice
The user cost of capital is given by the following formula,where PK is the real price of capital goods,d is the depreciation rate,and r is the expected real interest rate.
A) uc = (r + d) /PK
B) uc = PK/(r + d)
C) uc = dPK/r
D) uc = (r + d) PK
Correct Answer:
Verified
Correct Answer:
Verified
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