Question

Define Gross Investment.

Answer 1

Gross investment is the amount a company has invested in an asset or business without factoring in depreciation. Factoring in depreciation creates net investment. For example, a company buys a car for $5,000 that has depreciated by $3,000 after three years.

Answer 2

Hey mate!!

The amount a company invests in business assets that does not account for any depreciation. The gross figure more accurately reflects the company's actual financial commitment to an asset from which it can derive a return on investment.

(or)

Gross private domestic investment is the measure of physical investment used in computing GDP in the measurement of nations' economic activity. This is an important component of GDP because it provides an indicator of the future productive capacity of the economy.

Hope this helps you.

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