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-Write Down the Equation for the User Cost of Capital

Question 27

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  -Write down the equation for the user cost of capital.Discuss what happens to the user cost in the following scenarios: a.the corporate income tax rises; b.the real interest rises; c.there is an increase in capital gains.Graphically show what happens to capital investment.
-Write down the equation for the user cost of capital.Discuss what happens to the user cost in the following scenarios:
a.the corporate income tax rises;
b.the real interest rises;
c.there is an increase in capital gains.Graphically show what happens to capital investment.

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The user cost is: blured image a. blured image : Raises the user...

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