A company has three delivery trucks.Each month the trucks require repairs to keep them in good working order.Which of the following is true?
A) Investment is equal to zero.
B) Net investment is equal to zero.
C) The company is not in a steady state.
D) Capital is increasing.
E) Capital is decreasing.

Question

Quizplus · Accepted Answer

Since the repairs required for the trucks are necessary to maintain their good working condition, they are considered as capital maintenance expenditures and not net investments. Therefore, the net investment in this case is equal to zero.

A Company Has Three Delivery Trucks