Suppose the real interest rate is r=0.02, the depreciation rate is d = 0.13, the price of capital is 34, and the effective tax rate on revenue is t = 0.25. The tax-adjusted user cost of capital equals. (Round your answer to two decimal places.)

Suppose the real interest rate is r=0.02, the depreciation rate is d = 0.13, the price of capital is 34, and the effective tax rate on revenue is t = 0.25. The tax-adjusted user cost of capital equals. (Round your answer to two decimal places.)

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter14: Investment, The Capital Market, And The Wealth Of Nations

Section: Chapter Questions

Problem 8CQ

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Suppose the real interest rate is r= 0.02, the depreciation rate is d = 0.13, the price of capital is 34, and the effective tax rate on revenue is t = 0.25.
The tax-adjusted user cost of capital equals. (Round your answer to two decimal places.)

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