Examlex
All of the following statements about Hrotsvitha are true EXCEPT that
Gross Investment
The total amount spent on purchasing or building new fixed assets and on replacing old assets, without deducting for depreciation.
Net Investment
The total amount spent on capital assets (like plant and equipment) minus depreciation, reflecting the actual increase in an entity's productive capacity.
Depreciation
The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value of assets due to use, wear and tear, or obsolescence.
Implicit Cost
An indirect, non-payment expense represented by the opportunity cost of utilizing resources in a specific project instead of elsewhere.
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