The Expected Average Rate of Return for a Proposed Investment

question 57

Multiple Choice

The expected average rate of return for a proposed investment of $540,000 in a fixed asset,with a useful life of four years,straight-line depreciation,no residual value,and an expected total net income of $216,000 for the 4 years,is

• A)18%.
• B)15%.
• C)27%.
• D)20%.

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Definitions:

Monocot Leaves

Leaves of monocotyledonous plants, typically characterized by parallel veins.

Parallel Venation

A pattern of plant vein arrangement where veins run parallel to each other throughout the leaf blade.

Palmate Venation

A type of leaf venation where several main veins radiate outwards from a single point, resembling the palm of a hand, typical of some types of plants.

Phloem

The vascular tissue in plants responsible for the transport of organic nutrients, particularly sucrose, from the leaves to the rest of the plant.