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% с. 22.5% d. 45%

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% с. 22.5% d. 45%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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%

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