Business, 08.06.2020 22:57 destromero

You have just purchased a new DVD player to show videos to your customers. The DVD player costs $500, and you depreciate the machine at a rate of 25% each year. You can borrow money from the bank at 10%, or receive 6% for depositing money at the bank. The expected inflation rate in the coming year is 5%. You used the company's own funds to purchase the DVD player. The firm's user cost of capital for the first year is: a. $130
b. $150.
c. $155.
d. $175.

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You have just purchased a new DVD player to show videos to your customers. The DVD player costs $500...

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