At the beginning of the year, Tom's Tubes had capital 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 is
A)1 machine.
B)2 machines.
C)3 machines.
D)6 machines.
E)5 machines

Question

Quizplus · Accepted Answer

Tom scrapped 2 old machines and purchased 3 new machines, so his net investment is 3 - 2 = 1 machine.

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