This year Pizza Hut makes a total investment of $1.3 billion in new stores. Its depreciation in this year is $300 million. Pizza Hutʹs gross investment is and its net investment is .
A) $1.3 billion; $1.6 billion
B) $1.0 billion; $0.7 billion
C) $1.3 billion; $1.0 billion
D) $1.0 billion; $1.3 billion

Question

Quizplus · Accepted Answer

Gross investment is the total amount invested, which is $1.3 billion. Net investment is gross investment minus depreciation, which is $1.3 billion - $0.3 billion = $1.0 billion.

This Year Pizza Hut Makes a Total Investment of $1