What would be the marginal cost of each dollar

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Reference no: EM131200286

Suppose that dividend yield is 6%, depreciation is 12%, and the corporate tax rate is 35%. What would be the marginal cost of each dollar of machinery investment in the following situations?

a. Firms are allowed to expense the machine.

b. There is an investment tax credit of 8%.

Reference no: EM131200286

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