The amount of investment that replaces obsolete and worn-out capital is called
A) gross investment.
B) net investment.
C) depreciation or capital consumption.
D) tax-free investment.

Question

Quizplus · Accepted Answer

Depreciation or capital consumption refers to the amount of investment that is used to replace obsolete or worn-out capital, ensuring that the productive capacity of assets is maintained over time.

The Amount of Investment That Replaces Obsolete and Worn-Out Capital