Calculate the After-Tax User Cost of Capital of a Machine

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

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Definitions:

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A widely enjoyed dish made of a grilled or fried patty usually made from ground beef, served within a cut-open bread roll or bun.

Indifference Curve

A graph showing different combinations of goods or services that give a consumer equal satisfaction and utility.

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A savory dish of Italian origin consisting of a usually round, flattened base of leavened wheat-based dough topped with tomatoes, cheese, and often various other ingredients.

Indifference Curve

A graphical representation showing different combinations of two goods that provide the consumer with equal levels of satisfaction and utility.