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The Amount of the Average Investment for a Proposed Investment

question 56

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The amount of the average investment for a proposed investment of $70,000 in a fixed asset,with a useful life of four years,recognition is given to the effect of straight-line depreciation on the investment,no residual value,and an expected total net income of $21,600 for the 4 years,is:


Definitions:

Opportunity Cost

Neglecting the potential profits from various alternatives upon the decision of one.

Coolers

Insulated containers used to keep food and drinks cold.

Radios

Electronic devices that receive and play audio broadcasts over the airwaves.

Trade

The action of buying, selling, or exchanging goods and services between people or countries.

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