The Expected Average Rate of Return for a Proposed Investment

question 88

Multiple Choice

The expected average rate of return for a proposed investment of $900,000 in a fixed asset, with a useful life of five years, recognition is given to the effect of straight-line depreciation on the investment, no residual value, and an expected total net income of $360,000 for the 5 years, is:

• A) 18.5%.
• B) 40%.
• C) 12.5%.
• D) 16%.

---

Definitions:

Engine Type

A classification that describes the construction and functioning of a motor engine, often specified by its fuel source, like gasoline, diesel, or electric.

Artificial Intelligence System

A system that mimics human intelligence processes through algorithms and machine learning to perform tasks that typically require human intelligence.

Approved Standards

Officially recognized criteria, guidelines, or specifications for products, services, processes, or systems that ensure quality, safety, efficiency, and interchangeability.

Behavior

The actions or reactions of an object or organism, usually in relation to the environment or stimuli.