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Michael is an Internet service provider. On December 31, 2013, he bought an existing business with servers and a building worth $500,000. During 2014, he bought new servers for $200,000. The market value of his older servers fell by $50,000. Michael's gross investment during 2014 was $ 200,000 Michael's depreciation during 2014 was $ 50,000 Michael's net investment during 2014 was $ 150,000. Michael's capital at the end of 2014 was $ 550,00

Michael is an Internet service provider. On December 31, 2013, he bought an existing business with servers and a building worth $500,000. During 2014, he bought new servers for $200,000. The market value of his older servers fell by $50,000. Michael's gross investment during 2014 was $ 200,000 Michael's depreciation during 2014 was $ 50,000 Michael's net investment during 2014 was $ 150,000. Michael's capital at the end of 2014 was $ 550,00

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Michael is an Internet service provider. On December 31, 2013, he bought an existing business with servers and a building worth $500,00O. During 2014, he bought new servers for $200,000. The market value of his older servers fell by $50,000. Michael's gross investment during 2014 was $ 200,000 Michael's depreciation during 2014 was $ 50,000 Michael's net investment during 2014 was $ 150,000 Michael's capital at the end of 2014 was $ 550,00 80 Next
Transcribed Image Text:Michael is an Internet service provider. On December 31, 2013, he bought an existing business with servers and a building worth $500,00O. During 2014, he bought new servers for $200,000. The market value of his older servers fell by $50,000. Michael's gross investment during 2014 was $ 200,000 Michael's depreciation during 2014 was $ 50,000 Michael's net investment during 2014 was $ 150,000 Michael's capital at the end of 2014 was $ 550,00 80 Next
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