Question

If net investment is zero, then Group of answer choices 1. gross investment is greater than depreciation. 2. gross investment equals depreciation. 3. gross investment is less than depreciation. 4. depreciation is zero.

Answer 1

Answer:

2. gross investment equals depreciation.

Explanation:

Following Examples is supporting the answer:

Gross investment = $1.3 million.

Depreciation = $1.3 million

Gross Investment = Depreciation

$1.3 million = $1.3 million

Net investment = $1.3 million - $1.3 million = 0 million

Hence proved that Net investment will be zero if gross investment equals depreciation.