When Calculating the Annual Rate of Return, the Average Investment

question 53

Multiple Choice

When calculating the annual rate of return, the average investment is equal to

• A) (initial investment plus $0) divided by 2.
• B) initial investment divided by life of project.
• C) initial investment divided by 2.
• D) (initial investment plus salvage value) divided by 2.

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Definitions:

Judge-Made Law

Laws that have evolved from judicial decisions or case law, rather than from statutes or constitutions, thereby reflecting the judiciary's role in interpreting and applying legal principles to specific cases.

Legal Positivists

A school of thought in jurisprudence that holds the belief that the validity of a law is not related to its morality but is contingent upon its sources and recognition by the state.

Validly Enacted Laws

Laws that have been properly passed and approved by the legislative process, and are therefore legally binding.

Just Law

A legal principle or legislation that is regarded as fair, morally right, and in accordance with ethical standards.