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    Exam 4: Consumption, saving, and Investment
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    Calculate the After-Tax User Cost of Capital of a Machine
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Calculate the After-Tax User Cost of Capital of a Machine

Question 38

Question 38

Multiple Choice

Calculate the after-tax user cost of capital of a machine that costs $5000 and depreciates at a 25% rate,when the interest rate is 5% and the tax rate on revenue is 25%.


A) $200
B) $275
C) $2000
D) $2750

Correct Answer:

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