Final answer:
Net investment in capital assets is calculated by deducting accumulated depreciation from capital assets. This reflects the capital's reduction in value due to aging and wear, which is integral in determining the net national product.
Step-by-step explanation:
Net investment in capital assets is computed by taking the capital assets and subtracting accumulated depreciation. Depreciation represents how much physical capital is worn out or reduced in value over time, a natural occurrence as assets age. The concept of depreciation is crucial when calculating various economic measures such as the net national product (NNP), which is derived by taking the Gross National Product (GNP) and subtracting depreciation. This measure gives us an indication of the actual productive potential of an economy after accounting for wear and tear on capital assets. Furthermore, NNP can be divided into national income, which includes all income to businesses and individuals, and personal income which is restricted to incomes received by individuals.