Calculate the after-tax user cost of capital of a machine that costs $5000 and depreciates at a 25% rate,when the interest rate is 5% and the tax rate on revenue is 25%.
A)$200
B)$275
C)$2000
D)$2750

Question

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The Answer of Calculate the after-tax user cost of capital of a machine that costs $5000 and depreciates at a 25% rate,when the interest rate is 5% and the tax rate on revenue is 25%.
A)$200
B)$275
C)$2000
D)$2750

Calculate the After-Tax User Cost of Capital of a Machine