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 $4,800,000 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 $10,560,000 is:

• A) 24%
• B) 22%
• C) 45%
• D) 10%

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Definitions:

Wireless WAN

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Electronic Storefront

The website of a single company, with its own Internet address, at which orders can be placed.