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At the start of the year, your firm's capital stock equaled $30 million, and at the end of the year it equaled $34 million. The
At the start of the year, your firm's capital stock equaled $30 million, and at the end of the year it equaled $34 million. The average depreciation rate on the capital is 8%. Net investment during the year equaled less than or equal to $3.0 million more than $3.0 million but less than or equal to $3.5 million more than $3.5 million but less than or equal to $4.0 million more than $4.0 million but less than or equal to $4.5 million more than $4.5 million OOO QUESTION 3 0.3 points With a nominal interest of 2%, an expected inflation rate of 2%, and the interest income taxed at a rate of 20%, the expected after-tax real interest rate is less than or equal to 0% more than 0%, but less than or equal to 1% more than 1%, but less than or equal to 2% more than 2%, but less than or equal to 3% more than 3% QUESTION 4 0.3 points Calculate the user cost of a machine that costs $5,000 and depreciates at a rate of 8%. The nominal interest rate is 2%, and the expected inflation rate is 2%. less than or equal to $400 more than $400 but less than or equal to $500 more than $500 but less than or equal to $600 more than $600 but less than or equal to $700 more than $700
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