A car company currently has capital stock of $100 million and desires a capital stock of $110 million.
- If it experiences no depreciation, how much will it need to invest to get to its desired level of capital stock?
- If its annual depreciation is 5%, how much will it need to invest to get to its desired level?
- If its annual depreciation is 10%, how much will it need to invest to get to its desired level?