00:01
Hello students, we are given a question that capitalized cost is defined as the time dependent value of the money streaming both from changes.
00:09
Okay, both from changes in the purchasing power of money and from the real earning potential of alternative investments over time.
00:16
Okay, students, we are given this type of statement.
00:19
We just need to tell whether it is true or false.
00:21
So first of all, we are supposed to know that it should be a false statement.
00:24
Why? because we are supposed to know that above given definition is of time value money.
00:30
And we are supposed to know that the time value of money is nothing but the time dependent value of money stemming both from changes in purchasing power of money and from real earning potential of alternative investments over time.
00:44
And okay, and the capitalized cost is defined as the cost that occurs due to the purchase of a fixed asset...