Which of the following machines has the lowest user cost? Machine A costs $15,000 and depreciates at a 25% rate, machine B costs $10,000 and depreciates at a 20% rate, machine C costs $10,000 and depreciates at a 10% rate, and machine D costs $17,000 and depreciates at an 11% rate. The expected real interest rate is 0%.
Question 9Select one:
A.
machine A
B.
machine B
C.
machine C
D.
machine D