The Zonamo Company Produces Waste Disposal Machines and Sells Them

Multiple Choice

The Zonamo company produces waste disposal machines and sells them to militaries all over the world. The company started last year with $10 million of capital on hand and invested $15 million in new capital throughout the year. At the end of the year, the company's capital stock was $17 million. Hence, for the year, depreciation equaled _{--------------------}and net investment equaled _{--------------------}.

A) $25 million; $5 million
B) $8 million; $15 million
C) $8 million; $7 million
D) $5 million; $5 million
E) $7 million; $8 million