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Business, 27.07.2019 00:20 poptropic7932
You have just purchased a new dvd player to show videos to your customers. the dvd player cost $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. (use decimals, so that 10% = 0.10.) the firm's user cost of capital is
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