Suppose That Net Investment in 2009 Was $360 Billion and Depreciation

question 89

Multiple Choice

Suppose that net investment in 2009 was $360 billion and depreciation was $30 billion. Gross investment in 2009 was:

• A) $390 billion.
• B) $330 billion.
• C) $300 billion.
• D) - $30 billion.

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Definitions:

Marketability

The ease with which an asset can be bought or sold in the market without affecting its price.

Operating Cash Flow

The cash generated from a company's normal business operations before financing and investment activities.

Net Capital Spending

The total expenditure on fixed assets less any sales of fixed assets during a given period, often used in assessing a company's investment in physical assets.

Earnings Before Interest And Taxes

A financial performance measure that calculates a company's profitability by excluding interest and taxes expenses.