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Real net investment

GDP Calculation? Hidden categories: All articles with unsourced statements Articles with unsourced statements from April All stub articles. Louis, MO The formula for calculating net investment is:. Capital Consumption Allowance CCA Capital consumption allowance CCA is the amount of money a country has to spend each year to maintain its present level of economic production. While this may not be a problem for a year or two, a net investment that is negative for a prolonged time period will render the enterprise uncompetitive at some point.

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View All. Net fixed investment: Residential: Consumption of fixed capital. From Wikipedia, the free encyclopedia. Views Read Edit View history. We will reply as soon lnvestment possible. If the gross investment is consistently higher than depreciation, the net investment will be positive, invvestment that productive capacity is increasing. While this may not be a problem for a year or real net investment, a net investment that is negative for a prolonged time period will render the enterprise uncompetitive at some point. Net investment is gross investment minus depreciation. Net fixed investment: Net nonresidential: Consumption of fixed capital. Questions or Comments. Louis, MO Follow us. Namespaces Article Talk. The net investment ijvestment required for a company depends on the sector it operates in since all sectors are not equally capital intensive.

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