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Land Is Not Depreciated Because It

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Land is not depreciated because it


Definitions:

Annual Cash Inflow

The total amount of money being received into a business from all sources over the course of a year.

Depreciation

The process of allocating to expense the cost of a plant asset over its useful (service) life in a rational and systematic manner.

Net Income

The net income of a company once all costs and taxes are deducted from the total revenue.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost. It measures the profitability or efficiency of an investment.

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