Question

The Zonamo company produces waste disposal machines and sells them to militaries all over the world. The company started last year with $10 million of capital on hand and invested $15 million in new capital throughout the year. At the end of the year, the company's capital stock was $17 million. Hence, for the year, depreciation equaled ________ and net investment equaled ________.
A) $8 million; $7 million
B) $7 million; $8 million
C) $25 million; $5 million
D) $5 million; $5 million
E) $8 million; $15 million

Answer

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