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D ∨ ∼E
Depreciation
The reduction in the value of an asset over time, typically due to wear and tear, obsolescence, or market conditions.
Net Investment
The total spending on new capital minus depreciation on existing capital within a given period.
Gross Investment
Refers to the total amount of investment in physical assets and capital expenditures made by businesses before accounting for depreciation.
Depreciation
The accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or age.
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