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The Net Investment Flow (Rate of Capital Formation) of the Giant

question 109

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The net investment flow (rate of capital formation) of the giant conglomerate LTF incorporated is projected to be ​ The net investment flow (rate of capital formation)  of the giant conglomerate LTF incorporated is projected to be ​   ​ Million dollars/year in year t. Find the accruement on the company's capital stock in the eight year. Hint: The amount is given by   A)  $40.53 million B)  $41.85 million C)  $40.74 million D)  $38.41 million
Million dollars/year in year t. Find the accruement on the company's capital stock in the eight year. Hint: The amount is given by The net investment flow (rate of capital formation)  of the giant conglomerate LTF incorporated is projected to be ​   ​ Million dollars/year in year t. Find the accruement on the company's capital stock in the eight year. Hint: The amount is given by   A)  $40.53 million B)  $41.85 million C)  $40.74 million D)  $38.41 million

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, age, or obsolescence.

Double Diminishing-Balance

A method of accelerated depreciation which calculates depreciation at twice the rate of the straight-line depreciation method on the remaining book value each year.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of an asset's value has been used.

Diminishing-Balance

A method of depreciation that accelerates the rate at which an asset loses value, applying a constant rate to the declining book value each period.

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