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Question
Gross investment =
Options
Net investment + Depreciation
Net investment − Depreciation.
Gross investment = expenditure on the purchase of fixed assets during the accounting year + expenditure on the inventory stock during the accounting year
Both Net investment + Depreciation and Gross investment = expenditure on the purchase of fixed assets during the accounting year + expenditure on the inventory stock during the accounting year
Solution
Net investment − Depreciation.
Explanation:
Gross investment is the amount spent during the year on the purchase of fixed assets or inventory stock.
Gross investment = expenditure on the purchase of fixed assets during the accounting year + expenditure on the inventory stock during the accounting year
or
Gross investment = Net investment + Depreciation.