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When calculating investment spending, which of the following expenditures would be included?


a) an individual buys a newly built home
b) dell computer buys a new robot for its assembly line
c)ford motor company builds a new factory
d) all of the above

Depending on whom you ask, some folks would say they are all investments. In the realm of finance, however, this is not so.

If the individual in (a) purchases the home to live in, it is not an investment but a residence (ask the IRS).

Buying a new robot (b) is a replacement/maintenance cost. It would probably be expensed in the year purchased.

The new factory (c) is an investment.

Best of success.

All of the above as all show a potential to earn more money by purchasing them.

A, because the investor's spending is all the figures into the report. B and C are irrelevant.

Edit: Don't listen to Laura (above). She doesn't know, she's wrong.

all of the above

answer is C
a and b are not investments, they are capital assets.

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