If gross investment is ₹220 crore and depreciation of capital is ₹220 crore, what is net investment?
Answer and explanation
Correct answer: 0 करोड़ रुपये
Apply the formula net investment = gross investment − depreciation. The calculation is ₹220 crore − ₹220 crore = ₹0 crore. Gross investment exactly replaces the capital lost through depreciation, so the capital stock is maintained but does not increase. It is not ₹220 crore or negative because the two equal amounts completely offset each other.
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What is the correct answer to this question?
0 करोड़ रुपये
Why is this the correct answer?
Apply the formula net investment = gross investment − depreciation. The calculation is ₹220 crore − ₹220 crore = ₹0 crore. Gross investment exactly replaces the capital lost through depreciation, so the capital stock is maintained but does not increase. It is not ₹220 crore or negative because the two equal amounts completely offset each other.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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