Explain the meaning of capitalising income
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Capitalization of earnings is a method of determining the value of an organization by calculating the net present value (NPV) of expected future profits or cash flows. Thecapitalization of earnings estimate is determined by taking the entity's futureearnings and dividing them by thecapitalization rate (cap rate).
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It is a earning which u keep after the crop production in order to keep ur future secure!!!!
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