The Expenditures Approach - Gross versus Net Investment Exercise 2 (Algo) Suppose an economy starts the year with $100 million in capital, and during the course of a year, it adds $18 million of gross investment. Economists estimate that the depreciation rate for this economy is 8% per year. Instructions: Enter your answers as a whole number. a. Calculate depreciation and net investment for this economy. Depreciation: $ 10 million Net investment: $ 8 million b. Now calculate the amount of next year's beginning capital stock for this economy. $ million