Depreciation is the lost value caused by wear and tear on a capital. For example, if a machine is used in production, after one year of use it will lose $150 in value, which is subtracted from NNP.
Depreciation is the lost value caused by wear and tear on a capital. For example, if a machine is used in production, after one year of use it will lose $150 in value, which is subtracted from NNP.