Assume that the user cost of capital (C)is simply
where r is the after-tax rate of return, 6 is the depreciation rate, and q is the corporate tax rate. Now assume further that the after-tax rate of return is 10 percent and the economic depreciation rate is 2 percent. The firm faces corporate taxes of 35 percent. What is the user cost of capital in this case?

Question

Assume that the user cost of capital (C)is simply
  where r is the after-tax rate of return, 6 is the depreciation rate, and q is the corporate tax rate. Now assume further that the after-tax rate of return is 10 percent and the economic depreciation rate is 2 percent. The firm faces corporate taxes of 35 percent. What is the user cost of capital in this case?

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The Answer of Assume that the user cost of capital (C)is simply
  where r is the after-tax rate of return, 6 is the depreciation rate, and q is the corporate tax rate. Now assume further that the after-tax rate of return is 10 percent and the economic depreciation rate is 2 percent. The firm faces corporate taxes of 35 percent. What is the user cost of capital in this case?

Assume That the User Cost of Capital (C)is Simply