Write the tax-adjusted user cost of capital as a function

Reference no: EM13191824

MPK=20-.02K
d(depreciation)=.2
Kt(current capital stock)=900
Pk(price of one unit of capital)=1
tax rate=.15

Write the tax-adjusted user cost of capital as a function of the real interest rate(r). Also write the desired future capital stock and desired investment as functions of (r).

Reference no: EM13191824

Questions Cloud

Compute the steady-state temperature : Compute the steady-state temperature that will finally be obtained in the tank.

Differentiate implicitly with resepect to x : differentiate implicitly with resepect to x, obtain an expression for dy/dx, x^3y^3(1-3logx)=1

How fast is the baseball traveling in this case : On August 24, 1894, Pop Shriver of the Chicago White Stockings caught a baseball dropped (by Clark Griffith) from the top of the Washington Monument. The Washington Monument is 555 ft tall and a baseball weighs 5 1/8 oz.

Describe how you brand are positioned-marketplace of people : Briefly describe how you, as brand, are positioned in the "marketplace of people." Use the concepts of brand mantra, core brand values, mental map and points of parity/difference.

Write the tax-adjusted user cost of capital as a function : Pk(price of one unit of capital)=1 tax rate=.15 Write the tax-adjusted user cost of capital as a function of the real interest rate(r). Also write the desired future capital stock and desired investment as functions of (r).

What is the inflation premium : Suppose that the nominal rate of interest is 4 percent and the inflation premium is 2 percent. What is the real interest rate Alternatively, assume that the real interest rate is 1 percent and the nominal interest rate is 6 percent.

Determine the value k0 needed : Determine the value k0 needed if the chamber is to reduce projectile velocity to 1% of its incoming value within d units of distance.

What is the equation of the demand curve for clothing : A consumer purchases two goods, food (F) and clothing (C). Her utility function is U(F,C) = FC + C; thus, MUf = C and MUc = F + 1. The price of food is Pf , the price of clothing is Pc , and the income of the consumer is I.

Coordinated management of meaning : In your own words, explain the key principles / ideas that Griffin outlines for Coordinated Management of Meaning (CMM).

User Account

All Pages