The Expected Average Rate of Return for a Proposed Investment

question 7

Multiple Choice

The expected average rate of return for a proposed investment of $6,000,000 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 $12,000,000 over the 20 years is

• A) 20%
• B) 10%
• C) 40%
• D) 5%

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Definitions:

Ionizing Radiation

Radiation with enough energy to remove tightly bound electrons from atoms, thus creating ions and causing molecular damage.

Alpha Decay

A type of radioactive decay in which an atomic nucleus emits an alpha particle (two protons and two neutrons bound together) and transforms into a different element.

Atomic Nucleus

The atomic nucleus is the small, dense region at the center of an atom, composed of protons and neutrons, and is the core where most of an atom's mass is concentrated.

Ionizing Power

The ability of a chemical element or electromagnetic radiation to ionize atoms or molecules by altering their charge through the removal or addition of electrons.