You Have Just Purchased a New VCR to Show Videos

question 45

Multiple Choice

You have just purchased a new VCR to show videos to your customers.The VCR cost $500,and you depreciate the machine at a rate of 25% each year.You can borrow money from the bank at 10%,or receive 6% for depositing money at the bank.The expected inflation rate in the coming year is 5%.You used the company's own funds to purchase the VCR.The firm's user cost of capital for the first year is

• A)$130.
• B)$150.
• C)$155.
• D)$175.

---

Definitions:

Immune Globulin

A blood product used in medical treatment containing antibodies that can provide immunity against various diseases.

Doses

The specific amount of medication prescribed to be taken at one time or over a specified period.

Preadolescent Girls

Preadolescent girls are typically between the ages of 8-12, experiencing the phase just before entering puberty.