An Airline spends the following amounts: Employee Salaries 500,000 New Plane 1,500,000 New Engine to fix an existing plane 150,000 Paper for consumer tickets 20,000 Fuel for fleet of planes 225,000 for the following 2 questions write the answer in whole numbers a. How much of the airline spending is considered gross investment? $ b, How much is net investment? $

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
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Problem 1.1P
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An Airline spends the following amounts:
Employee Salaries 500,000
New Plane 1,500,000
New Engine to fix an existing plane 150,000
Paper for consumer tickets 20,000
Fuel for fleet of planes 225,000
for the following 2 questions write the
answer in whole numbers
a. How much of the airline spending is
considered gross investment? $
b, How much is net investment? $
Transcribed Image Text:An Airline spends the following amounts: Employee Salaries 500,000 New Plane 1,500,000 New Engine to fix an existing plane 150,000 Paper for consumer tickets 20,000 Fuel for fleet of planes 225,000 for the following 2 questions write the answer in whole numbers a. How much of the airline spending is considered gross investment? $ b, How much is net investment? $
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