Let us say a firm produces Rs 100 worth of goods per year, Rs 20 is the value of intermediate goods used by it during the year and Rs 10 is the value of capital consumption. Calculate the Gross value added.

Option 1: Rs. 90 per year -> This incorrectly deducts only Rs 10 from the total output.

Option 2: Rs. 100 per year -> This is the total value of output without any deductions.

Option 3: Rs. 70 per year -> This is the Net Value Added (after deducting both intermediate goods and depreciation).

Option 4: Rs. 80 per year -> This correctly calculates Gross Value Added.

Hence, Option 4: Rs. 80 per year -> Gross Value Added (GVA) = Value of Output - Value of Intermediate Consumption. GVA = Rs 100 - Rs 20 = Rs 80. Note that capital consumption (depreciation) of Rs 10 is NOT deducted when calculating GROSS value added. It would only be deducted to find Net Value Added (Rs 80 - Rs 10 = Rs 70). -> correct