The AGI has complained about recent high taxes on investment. Suppose that a firm is taxed at rate on profits such that the marginal benefit of a one dollar increase in investment is MPK (1). But the firm is also entitled to varioustax benefits, including tax credits on the investment, an accelerated depreciation schedule, and tax deductibility of interest costs.If the tax-saving opportunities are represented as a proportion, s, of the purchase price of the investment good, the cost of borrowing is r, and the true rate of depreciation is . As the Chief Economist, what will be your advice to the Trade and Industry Minister, seeking your competent advice on how to create incentive for investment? Be clear with your derivations and intuition.