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Distinguish between gross investment and depreciation.

Dear Student,
Investment refers to the addition made to the capital stock of an economy. It is the expenditure incurred on purchase of fixed assets and unsold stock during a financial year whereas, Depreciation is the fall in the value of fixed assets due to the normal wear and tear,with the passage of time.Depreciation is also known as replacement cost or capital consumption allowance.
Gross value=Net value+Depreciation.
Regards, 

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Hey.....

Depreciation forms the basis of distinction between the Gross Product and the Net Product. Gross Product is inclusive of depreciation, while, Net Product does not include depreciation.

Net Product?= Gross Product?? Depreciation

In other words, to arrive at an estimate of Net Product, we need to deduct depreciation from the value of the Gross Product.
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Dear Student, The total addition made to the capital stock of economy in a given period is termed as Gross Investment. Capital stock consists of fixed assets and unsold stock. So, gross investment is the expenditure on purchase of fixed assets and unsold stock during the accounting year. Whereas,Depreciation refers to a fall in the value of fixed assets due to normal wear and tear, passage of time or expected obsolescence. Gross Value = Net Value + Depreciation. Regards,
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