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Business, 16.03.2020 21:51 onlymyworld27

Now suppose we impose a 20% tax on earnings minus labor costs (as discussed in class). In addition, the government introduces tax incentives for investment that reduce the effective depreciation rate to 3%. The dividend cost remains 5%. Now how many machines should the firm purchase? You must show your work for credit.?

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Now suppose we impose a 20% tax on earnings minus labor costs (as discussed in class). In addition,...
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