Which of the Following Is Not Correct

question 8

Multiple Choice

Which of the following is not correct?

• A)Investment is the purchase of new plant, equipment, and buildings and the additions to inventories.
• B)Net investment equals gross investment minus depreciation.
• C)Depreciation decreases the value of a firm's capital.
• D)Gross investment is the amount by which the value of capital increases.
• E)Gross investment is the total amount spent buying new capital and replacing depreciated capital.

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Definitions:

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