The Expected Average Rate of Return for a Proposed Investment

question 101

Multiple Choice

The expected average rate of return for a proposed investment of $600,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $240,000 for the 4 years, is:

• A) 40%
• B) 20%
• C) 60%
• D) 24%

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Definitions:

Decision Support

Systems or processes that help in making business or organizational decisions, often leveraging data and analytical models.

Caption

A property in a database that enables the field name to display in a more meaningful or readable manner.

Data Staging

An intermediate storage area used for data processing during the extract, transform, and load process; between the data source and the data warehouse.

Data Mining

The process by which great amounts of data are analyzed and investigated. The objective is to spot significant patterns or trends within the data that would otherwise not be obvious.