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:

Thalamus

A brain structure that acts as a relay station for sensory information, excluding smell, to the cerebral cortex.

Amygdala

A part of the brain's limbic system involved in emotion regulation, especially fear and the processing of emotional memories.

Galvanic Skin Response

Galvanic Skin Response is a method of measuring the electrical resistance of the skin, which varies with its moisture level; often used to gauge emotional arousal.

Autonomic Arousal

The physical response of the autonomic nervous system to stimuli, which can include increased heart rate, sweating, and other involuntary actions as a result of emotions such as fear or excitement.