Next period's capital is equal to current-period investment
A) plus the amount of current capital left over after depreciation.
B) minus the amount of current capital left over after depreciation.
C) plus the amount of current period depreciation.
D) minus the amount of current period depreciation.
E) plus the amount of current capital left over.

Question

Quizplus · Accepted Answer

Next period's capital will be the current period's investment (which adds new capital) plus the amount of current capital left over after depreciation (which is the amount of capital that still remains useful for the next period).

Next Period's Capital Is Equal to Current-Period Investment