The Expected Average Rate of Return for a Proposed Investment

question 48

Multiple Choice

The expected average rate of return for a proposed investment of $3,000,000 in a fixed asset giving effect to depreciation (straight-line method) with a useful life of 20 years,no residual value,and an expected total income of $6,000,000 is:

• A)25%.
• B)18%.
• C)40%.
• D)20%.

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Definitions:

Sherman Act

A landmark federal statute in the scope of U.S. antitrust law passed by Congress in 1890, which prohibits monopolistic practices and promotes competition.

Per Se Violation

An act that is inherently illegal, without the need for further evidence to prove its unlawfulness.

Economic Harm

Financial damage or loss experienced by an individual or entity due to another party's actions or events.

Territorial Restriction

Limitations placed on where a product can be sold or a service can be provided, often used by companies to divide markets or control franchises.