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SaskWidget Produces Plastic Parts

Question 18

Multiple Choice

SaskWidget produces plastic parts. At the beginning of the year, they held $24 million worth of capital. At the end of the year, they held $20 million worth of capital. One can conclude that


A) net investment increased by $4 million.
B) gross investment decreased by $4 million.
C) gross investment increased by $4 million.
D) depreciation exceeded gross investment by $4 million.
E) depreciation equals $4 million.

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