Asked by Victoria Nguyen on Jun 14, 2024
Verified
If a corporation has depreciation of $800 million and gross investment of $4 billion,how much is its net investment?
Net Investment
Net Investment refers to the total amount spent on purchasing new capital assets minus the proceeds from the sale of old or obsolete assets.
Depreciation
The gradual decrease in the economic value of the capital stock of a firm, country, or other entity, either through physical wear and tear or obsolescence.
- Acknowledge the constituents of investment pertinent to the computation of Gross Domestic Product.
Verified Answer
MD
Learning Objectives
- Acknowledge the constituents of investment pertinent to the computation of Gross Domestic Product.