In 2003, your firm's capital stock equaled $100 million, and in 2004 it equaled $105 million. The average depreciation rate on your capital stock is 20%. Gross investment in 2004 equaled

In 2003, your firm's capital stock equaled $100 million, and in 2004 it equaled $105 million. The average depreciation rate on your capital stock is 20%. Gross investment in 2004 equaled 



(a) $1 million.
(b) $5 million.
(c) $7 million.
(d) $25 million.





Answer: D


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