A house is a terrible investment. It is a depreciating asset that gets worn out and needs constant maintenance. People’s tastes change over time, and thus they don’t want the characteristics of older homes… I.E. most people find a 1970′s house hidious unless it has completely been ...
In a direct quote, a higherexchange rateimplies that the domestic currency is depreciating or becoming weaker since the price of the foreign currency is effectively rising—and vice versa. Thus, if theUSD/JPY(direct) quotation changes from 100 to 105, it indicates the yen is weakening against...
its not quite akin to putting money jn a car by buying outright as that’s a depreciating asset but for example I have circa 300k in equity sat in my house. There is ample evidence I’d be better wacking up the mortgage and using this elsewhere for better returns . I have in fact ...
Usingdepreciation, a business expenses a portion of the asset's value over each year of its useful life, instead of allocating the entire expense to the year in which the asset is purchased.6The purpose of depreciating an asset over time is to align the cost of the asset to the same y...
When a company sells an asset before it is done depreciating, the asset's book value or the excess of its cost over the total depreciation would be...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts...
its accounting statements might show a sharp decrease in profits whenever it replaced expensive machinery. This could discourage investment. The company’s overall profitability, however, would be constant because the machine generates enough profit to justify the initial expense, so depreciating the co...
As soon as you drive a new car off the lot, its value starts depreciating. If your new car is totaled within the first few years, you could owe the bank more than what your car is worth. Guaranteed asset protection, or “gap” insurance, covers this difference. Do You Need Gap Insu...
assessment contingenc assessment of adverti assessment of the wor assessment on water s assessment rolls asset asset betterments and asset custody departm asset finance asset market experime asset master record asset purchase agreem asset replacement fun asset transformation asset type asset value of sig...
A looser approach keeps your mortgage out of the equation since that’s an investment in an asset (your house) that should grow in value over time. Some people use a more strict definition of living debt-free, which includes avoiding credit cards altogether, while others see credit cards as...
This is a pretty awful investment too, as the max outcome you get is just a cheaper version of what you could have bought in the future, not liquid gains, and that investment only applies to a depreciating asset. Your "investment" could be wiped out by one car accident given it's ...