At the beginning of the year, Tom's Tubes had a capital stock of 5 tube inflating machines. During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's net investment for the year totaled

Question

Quizplus · Accepted Answer

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

At the Beginning of the Year, Tom's Tubes Had a Capital