In 2001 your firm's capital stock equaled $10 million,and in 2002 it equaled $15 million.The average depreciation rate on your capital stock is 20%.Gross investment in 2002 equaled

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The increase in capital stock from 2001 to 2002 is $5 million ($15 million - $10 million). With a 20% depreciation rate on the initial $10 million, depreciation is $2 million. Gross investment is the sum of net investment ($5 million) and depreciation ($2 million), totaling $7 million.

In 2001 Your Firm's Capital Stock Equaled $10 Million,and in 2002