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Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 20
Equation assumes that machines do not depreciate. How should the equation be changed if the machine deteriorates at the rate of d per year? If the machine still lasts forever (even though it will be very deteriorated), will its rental rate be given by the formula in Chapter 14-that is, v = (r + d)P?
Equation (1 + r) (1 + p e ) = 1+ r + p e + r p e = 1 + i
Equation (1 + r) (1 + p e ) = 1+ r + p e + r p e = 1 + i
Explanation
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The machine deteriorates at the rate of ...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
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