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Question
Which expression gives Net Investment?
Options
\[I_n=I_g-I_r\]
\[I_n=\frac{I_g}{I_r}\]
\[I_n=I_r-I_g\]
\[I_n=I_g+I_r\]
MCQ
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Solution
Net Investment is calculated by subtracting Replacement Investment from Gross Investment. Thus, the formula is \[I_n=I_g-I_r\].
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