Question

If gross investment is $2,593 billion and net investment is $873 billion, depreciation is:
A. $873 billion.
B. $1,720 billion.
C. $2,593 billion.
D. $3,466 billion.

Answer 1

Answer:

The correct option would be B. $1,720 billion.

Explanation:

We know that,

'Depreciation = Gross investment - Net investment',

We have given,

Gross investment = $ 2,593 billion

Net investment = $ 873 billion,

Therefore,

Depreciation in the amount = $ 2,593 - $873 = $ 1720 billion,

i.e. OPTION 'B' is correct.