The Expected Average Rate of Return for a Proposed Investment

question 159

Multiple Choice

The expected average rate of return for a proposed investment of $8,000,000 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 $12,000,000 is:

• A) 15%
• B) 12%
• C) 40%
• D) 7.5%

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Definitions:

Fibonacci Number

A sequence where each number is the sum of the two preceding ones, commonly starting with 0 and 1.

RecFunc Method

A method in programming that calls itself to solve a problem by breaking it down into smaller, more manageable problems.

Infinite Recursion

A condition in programming where a function calls itself indefinitely, often leading to a stack overflow error.

Output

Output refers to the data or information that is produced by a computer program, typically as a result of processing input data.