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If the Capital Stock Equals 200 Units in Year 1

Question 5

Multiple Choice

If the capital stock equals 200 units in year 1 and the depreciation rate is 5 percent per year, then in year 2, assuming no new or replacement investment, the capital stock would equal _____ units.


A) 210
B) 200
C) 195
D) 190

Correct Answer:

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