Asked by Kirsten Landsverk on May 28, 2024
Verified
If a corporation has gross investment of $300 million and depreciation of $70 million,how much is its net investment?
Net Investment
The total amount spent on capital assets (like plant and equipment) minus depreciation, reflecting the actual increase in an entity's productive capacity.
Depreciation
The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value of assets due to use, wear and tear, or obsolescence.
- Identify the elements involved in investment when determining Gross Domestic Product.
Verified Answer
DM
Learning Objectives
- Identify the elements involved in investment when determining Gross Domestic Product.