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:

Higher-order Need

A term in psychology referring to needs that go beyond basic survival, such as esteem, intimacy, and self-actualization.

Retirement Plan

A financial strategy designed to provide individuals with income or support upon ending their professional careers, often involving savings or investment programs.

Good Health

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Need For Achievement

A manifest need that concerns excellence, competition, challenging goals, persistence, and overcoming difficulties.