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³ Any number proportional to the value of the expression (4) will serve equally well.

⁴ It may reasonably be assumed that α ≦ 1, so tha t capital goods do not become more productive with age. If in addition the rate of interest is assumed positive, so that β < 1, it follows that αβ < 1. Then a piece of equipment with a yield of x_{r t} in the current period has a capital value which is finite and equal to:

.

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