Depreciation and opportunity cost of capital | Microeconomics | Khan Academy

[@eelcozuidervaart5467]

Thanks you very much, it is a great video!

[@steveguapo]

that made a lot of sense thanks!!!!!!!!!!!!!!!!!

[@yellowishdog5575]

Why is the $2m house expense not accounted for in either the economic or accounting profit calculations?

[@pillowsandblankets1432]

is that not start-up cost?

[@jackuy12345]

no property value goes down because its second hand after one year of use... only the value of the land goes up and if u renovate the property then its value goes up

[@DinkerTinker1]

Economic profit: the loss would probably be higher if you calculate in amortization and interest costs? I just assume a lot of real estate buyers use debt financing as part of the purchase? Just a thought.

[@dpatulea]

Why doesn't the Building cost (2M) doesn't goes in the Expenses for that Year? Wasn't that an investment in that business, and therefor it should affect both profits and be on a very negative value for that year?

[@ubentu]

So if I have the money up front it's probably more profitable to rent a property. if I have to take out a loan to invest in other risky heavily monitored investments at 10 percent would you take such a risk? What would be your minimum threshold of held assets? Would 1 million be enough to risk another million in loan money?

[@ben1996123]

2th comment lol awesome video.

[@wood-eye]

And 2nd sounds like tuned...

[@nedafar6973]

Why do u calculate OCC as weel at the end?

[@hkokoti]

Doesn't property value usually go up and not down?

[@pesterlis]

why isn't the cost of buying the building considered in the accounting profit?

[@AlvinGuoSubscribe]

At 1:32 the closed captions do not say 2 million dollars.

[@vic1596]

how do you do that

[@theurbanpandit7151]

He sounds like if DJ Vlad went to business school.

[@TheOfficialZTP]

@ben1996123 still wrong...!

[@ilyassboussetta7906]

frensh or arabic subtitle ? :(

[@ben1996123]

@TheOfficialZTP seconth

[@TheOfficialZTP]

@ben1996123 2th... that sounds like tooth...

:))))