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AAA Agricultural Machinery decides to invest in new robots. The cost of a robot is $1000. Suppose the expected real interest rate is 3% and

AAA Agricultural Machinery decides to invest in new robots. The cost of a robot is $1000. Suppose the expected real interest rate is 3% and the capital depreciation rate is 6%. The firm pays taxes equal to 10% of their output. What is the *tax-adjusted* user cost of capital?

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