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:

Learning Disabilities

A variety of disorders that affect the ability to process, understand, or use information, impacting learning in individuals of normal or above-average intelligence.

Normal Intelligence

Refers to a general measure of cognitive function that falls within the average range on standardized intelligence tests.

Sensory Function

The ability of an organism to receive and process sensory information from the environment through sight, sound, touch, taste, and smell.

Motor Development

The progression of muscular coordination required for physical activities, ranging from gross to fine motor skills, throughout a person’s life.