Which of the Following Machines Has the Lowest User Cost

Multiple Choice

Which of the following machines has the lowest user cost? Machine A costs $15,000 and depreciates at a 25% rate,machine B costs $10,000 and depreciates at a 20% rate,machine C costs $20,000 and depreciates at a 10% rate,and machine D costs $17,000 and depreciates at an 11% rate.The expected real interest rate is 5%.

A) machine A
B) machine B
C) machine C
D) machine D