The expected average rate of return for a proposed investment of $6,960,000 in a fixed asset, using straight-line depreciation, a useful life of 20 years, no residual value, and an expected total income of $20,880,000 over the 20 years, is (round to two decimal places) a.1.50% b.60.00% c.15.00% d.30.00%

The expected average rate of return for a proposed investment of $6,960,000 in a fixed asset, using straight-line depreciation, a useful life of 20 years, no residual value, and an expected total income of $20,880,000 over the 20 years, is (round to two decimal places) a.1.50% b.60.00% c.15.00% d.30.00%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1BE: Average rate of return Determine the average rate of return for a project that is estimated to yield...

See similar textbooks

Similar questions

The expected average rate of return for a proposed investment of $6,720,000 in a fixed asset, using straight-line depreciation, a useful life of 20 years, no residual value, and an expected total income of $20,160,000 over the 20 years, is (round to two decimal places) a. 1.50% b. 30.00% c. 60.00% d. 15.00%
The expected average rate of return for a proposed investment of $702,100 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total income of $371,360 for the 4 years is (round to two decimal places) a.1.06% b.26.45% c.13.22% d.0.53%
The expected average rate of return for a proposed investment of $786,000 in a fixed asset, with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $282,000 for the 4 years, is (round to two decimal points). a.35.88% b.8.97% c.13.90% d.17.94%
The expected average rate of return for a proposed investment of $639,000 in a fixed asset, with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $335,000 for the 4 years, is (round to two decimal points). Oa. 13.11% Ob. 52.43% 'c. 26.21% Od. 13.90%
The expected average rate of return for a proposed investment of $589,600 in a fixed asset with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $237,920 for the four years is (round to two decimal points) Oa. 0.40% Оь. 10.09% Oc. 20.18% С. Od. 0.81%
The expected average rate of return for a proposed investment of $659,500 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total income of $208,720 for the 4 years is (round to two decimal places) Oa 15.82% Oh. 0.32% Oc 7.91% Od 0.63 %
The expected average rate of return for a proposed investment of $652,000 in a fixed asset, with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $241,000 for the 4 years, is: a. 13.90% b. 9.24% c. 36.96% d. 18.48%
The expected average rate of return for a proposed investment of $800,000 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total income of $360,000 for the 4 years IS a. 5.5% b. 11.3% C. 22.5% d. 45%
What is the annual equivalent worth of a project where (a) the initial investment is $50,000; (b) will have revenues of $8,000 per year; (c) annual cost of operation and maintenance of $1,200 and (d) a residual or salvage value of $2,000 after 15 years? Assume rate of return is 8%. A. $-41,200 B. $13,438 C. $6,800 D. $288 E. -$712 F. $3,600
Calculate the expected accounting rate of return on average investment for a proposed investment of $9.000,000 in a fued asset, using straight line depreciation with a useful life of 20 years, $600,000 residual value, and is expected to increase the company's total net income (after depreciation and taxes) over the investment's 20-year useful life by $12,000,00. O 12.5% O 250.0% O 18.0% O 14.3% O 6.7%
An investment of P8.5 M is expected to yield an annual income of P2.8 M. Determine the payout period in years based on the following estimates. Annual depreciation = P1.0 M Operational expenses = P0.6 M Taxes and insurance = P0.2 M Miscellaneous expenses = P50,000 Select one: a. 8.90 years b. 7.12 years c. 4.36 years d. 5.78 years
The expected average rate of return for a proposed investment of $44,000 in a fixed asset using straight-line depreciation, with a useful life of 4 years, no residual value, and an expected total net income of $11,000, is