At the beginning of the year, Tom's Tubes has capital of 5 tube- inflating machines.During the year, Tom scraps 2 old machines and purchases 3 new machines.Tom's net investment for the year is

Question

Quizplus · Accepted Answer

Net investment is calculated by subtracting the number of machines scrapped from the number of new machines purchased. Tom purchased 3 new machines and scrapped 2, so the net investment is 3 - 2 = 1 machine.

At the Beginning of the Year, Tom's Tubes Has Capital