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:

Congenital

Pertaining to conditions or traits present from birth, either inherited or caused by environmental factors.

Meningitis

The inflammation of the protective membranes covering the brain and spinal cord, potentially caused by infection.

Membranes

Thin layers of tissue that cover surfaces, line cavities, and separate spaces or organs within the body.

Parkinson Disease

A progressive neurological disorder characterized by movement problems such as tremors, stiffness, and slowed movement.