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Question: The user cost of capital: Consider the basic formula for the user cost of capital in the presence of a corporate income tax. Suppose the baseline case features an interest rate of 2 percent, a rate of depreciation of 6 percent, a price of capital that rises at 1 percent per year, and a 0 percent corporate tax rate. Starting from this baseline case, what is the user cost of capital after the following changes?
(a) No changes - the baseline case.
(b) The corporate tax rate rises to 35 percent.
(c) The interest rate doubles to 4 percent.
(d) Both (b) and (c).
Review the concept and details of computing GDP (GDP.pptx). Then listen to an excellent discussion of GDP and a variety of issues involved in computing GDP, including ones that are part of this week's discussion: GDP Discussion.
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one hundred compressors of 200 h.p. rating are being considered for purchase by the state highway department. the
What do you expect to happen in the long run?
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