Examlex
Explain why interest expense on investments is limited to net investment income.
Net Investment
The total amount spent by a company for purchasing new assets, after accounting for depreciation.
Gross Investment
The total amount spent on purchases of new capital and on replacing depreciated capital within an economy.
Net Investment
The sum of money used to purchase new capital assets, subtracting the depreciation from current capital assets.
Depreciation
The reduction in the value of an asset over time, due in particular to wear and tear.
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