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2. (15 points) Fred's Frisbees is trying to determine how many Frisbee pressing machines to buy for its new factory. The real price of a
2. (15 points) Fred's Frisbees is trying to determine how many Frisbee pressing machines to buy for its new factory. The real price of a new pressing machine is 7000 Frisbees. The depreciation rate on these Frisbee presses is equal to 15% per year. The real interest rate is 7%. The expected future marginal product of these fabricating machines is given by the expression 4540 5K, measured in Frisbees. (a) What is the user cost of capital? (b) What is the prot-maximizing number of Frisbee presses for Fred's to purchase for its new factory? (0) Before purchasing the machines Fred's nds that it will be subject to a new tax of 50 percent on all its revenue. Now what is the prot maximizing number of machines for Fred's to purchase
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