Suppose that new machines cost $504 and the value of marginal product of new machines is MPK = 246 - 6K, where K is the number of machines purchased. The depreciation rate of K is 15% and the dividend yield is 10%. What amount of K will you purchase?

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Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Suppose that new machines cost $504 and the value of marginal product of new machines is MPK = 246 - 6K, where K is the number of machines purchased. The depreciation rate of K is 15% and the dividend yield is 10%. What amount of K will you purchase? 

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