|
- UID
- 223263
- 帖子
- 255
- 主题
- 108
- 注册时间
- 2011-7-11
- 最后登录
- 2013-8-18
|
2#
发表于 2011-7-13 15:09
| 只看该作者
Economic depreciation is the decrease in the value of an investment over a period. For example, assume that a person buys a calculator for $10 and after one year the value of the calculator falls to $9. This decrease in value ($1) is economic depreciation.
On the other hand, she could’ve invested these $10 somewhere else and earned interest (let’s say @ 20%). The increase in the value of her asset ($2) is referred to as the forgone interest and also forms part of the opportunity cost.
By investing in the calculator, the company is worse off by $3.
Implied rental rate = economic depreciation + interest forgone.
P.S: Is forgone spelt foregone? |
|
