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:

Tax Lowered

The reduction of the rates at which individuals or corporations are taxed by the government.

Demand and Supply

Refers to the economic model that determines the price of goods in a market based on the quantity demanded by consumers and the quantity supplied by producers.

False and Deceptive

Activities or practices that intentionally mislead consumers or misrepresent facts for gain.

Bill of Rights

A collective name for the first ten amendments to the United States Constitution, guaranteeing such rights as the freedoms of speech, assembly, and worship.