Consider this statement: "Though net investment can be positive, negative, or zero, it is impossible for gross investment to be less than zero." Net investment is a component of a nation's gross domestic product (GDP). Explain.
Consider this statement: “Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zero.”If two firms are producing the same product at different marginal costs, then:a reallocation of output between firms can lower the industry's total costone firm must be producing where P does not equal MCneither firm is producing its output at the lowest attainable costInstead of complete insurance as in Exercise 4.4, you have a policy with a $5,000 deductible.What will your expected out-of-pocket spending be? This is true for all entities, from the smallest companies to the largest national economies. Enterprise value (EV) is a measure of a company's total value, often used as a comprehensive alternative to equity market capitalization.
Capital assets lose value over time due to wear and tear and obsolescence. incorrect because the depreciation on the existing capital stock is negative. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Suppose a company spends $1 million on a new piece of machinery that has an expected life of 30 years and has a Consider this statement: “Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zero.” This statement is correct because the depreciation on the existing capital stock is positive. This statement is correct because the depreciation on the existing capital stock is negative.
That's why, when comparing net investment among various companies, it is most relevant if they are in the same sector.
Free cash flow represents the cash a company can generate after accounting for capital expenditures needed to maintain or maximize its asset base. If gross investment is consistently higher than depreciation, the net investment figure will be positive, indicating that the company's productive capacity is increasing.
What will your expected insurance benefits be?Assuming that the premium equals 116 percent of expected insurance benefits, do you prefer the policy with a $5,000 deductible or complete coverage?
Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. Therefore, subtracting depreciation from gross
The total for capital assets also includes the costs of their upkeep, maintenance, repair, and installation. Net Investment = Capital Expenditures – Depreciation (non-cash) Regular investment in capital assets is critical to an enterprise's continuing success. It includes all expenditures by private companies and governments on real estate and inventories. This figure provides a …
Consider this statement: “Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zero.” Asked on 7 Feb 2020 Unlock answer
Net investment is, therefore, a better indicator than gross investment of how much an enterprise is investing in its business since it takes depreciation into account. If gross investment is consistently lower than depreciation, net investment will be negative, indicating that productive capacity is decreasing. Real gross domestic product is an inflation-adjusted measure of the value of all goods and services produced in an economy. Investing an amount equal to the total depreciation in a year is the minimum required to keep the This statement is: This statement is: correct, because depreciation on the existing capital stock is positive. That can be a problem down the road. Earnings before interest and taxes is an indicator of a company's profitability and is calculated as revenue minus expenses, excluding taxes and interest.Earnings Before Interest and Taxes – EBIT Definition Capital assets include all property and equipment that contribute to the productive capacity of the business. The net investment amount required for a company depends on the sector it operates in, Sectors such as industrial products, goods producers, utilities, and telecommunications are more capital intensive than sectors such as technology and consumer products. Net investment is the total amount of money that a company spends on capital assets, minus the cost of the depreciation of those assets. This statement is This statement is Correct, because depreciation on the existing capital stock is positive EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.
Net investment is the total amount of money that a company spends on Consider this statement: "Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zero." Thus, it is a leading indicator of a nation's potential economic production capacity. Consider this statement: "Though net investment can be positive, negative, or zero, it is impossible for gross investment to be less than zero."
Shareholder equity (SE) is the owner's claim after subtracting total liabilities from total assets.