The Expected Average Rate of Return for a Proposed Investment

question 129

Multiple Choice

The expected average rate of return for a proposed investment of $4,800,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $10,560,000 over the 20 years is

• A) 24%
• B) 22%
• C) 45%
• D) 10%

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Definitions:

Autoclave

A device that uses steam under pressure to sterilize medical instruments, laboratory equipment, and other materials, effectively killing microbes.

Autoclave

A device that uses steam under pressure to sterilize medical or laboratory instruments.

Steam Cycle

A process involving the heating, evaporation, and subsequent condensation of water to generate power, often used in power plants and engines.

Drying Cycle

The process or period during which moisture is removed from items, typically in a dryer, until they are deemed dry.