The Amount of the Estimated Average Income for a Proposed

question 99

Multiple Choice

The amount of the estimated average income for a proposed investment of $90,000 in a fixed asset,giving effect to depreciation (straight-line method) ,with a useful life of 4 years,no residual value,and an expected total income yield of $25,300,is

• A) $12,650
• B) $25,300
• C) $6,325
• D) $45,000

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Definitions:

Design Defects

Flaws in the planning or design of a product that result in it being unsafe or failing to perform as intended.

Product Liability

The legal responsibility of manufacturers and sellers for defects or hazards in products that cause harm.

Restatement (Third)

A reference to the third series of restatements of American law, which are compilations summarizing the court rulings on various legal subjects.

Product Defects

Flaws or errors in a product that make it unsafe or unfit for its intended use, possibly leading to recalls or liability issues for the manufacturer.