Where a Non-Current Asset Appreciates in Value Over Time,no Depreciation

question 13

True/False

Where a non-current asset appreciates in value over time,no depreciation should be charged.

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Definitions:

Annual Average Investment

The average amount invested over a certain period, typically calculated for evaluating investment performance.

Profitability Index

The profitability index measures the relationship between the present value of future cash flows and the initial investment.

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor.

Payback Method

An investment appraisal technique that calculates the amount of time required for an investment to generate cash flows sufficient to recover its initial cost.