Asked by jesslyn salim on Jun 19, 2024
Verified
Net investment
A) plus depreciation equals gross investment.
B) minus depreciation equals gross investment.
C) equals gross investment plus depreciation.
D) plus gross investment equals depreciation.
Net Investment
The overall expense incurred on new capital assets, reduced by the depreciation value of the existing capital assets.
Gross Investment
The total amount spent on new capital assets before accounting for depreciation, representing investment in expanding productive capacity.
Depreciation
The process by which assets lose value over time due to wear and tear or obsolescence.
- Understand the concept of investment in economic terms, including net and gross investment.
Verified Answer
HN
Hu?nh NhungJun 20, 2024
Final Answer :
A
Explanation :
Net investment is calculated by subtracting depreciation from gross investment. Therefore, option A is correct as it states that gross investment plus depreciation equals net investment.
Learning Objectives
- Understand the concept of investment in economic terms, including net and gross investment.