Desired level of capital stock

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A car company currently has capital stock of $100 million and desires a capital stock of $110 million.

a. If it experiences no depreciation, how much will it need to invest to get to its desired level of capital stock?

b. If its annual depreciation is 5%, how much will it need to invest to get to its desired level?

c. If its annual depreciation is 10%, how much will it need to invest to get to its desired level?

Reference no: EM132479123

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