The Expected Average Rate of Return for a Proposed Investment

question 48

Multiple Choice

The expected average rate of return for a proposed investment of $3,000,000 in a fixed asset giving effect to depreciation (straight-line method) with a useful life of 20 years,no residual value,and an expected total income of $6,000,000 is:

• A)25%.
• B)18%.
• C)40%.
• D)20%.

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Definitions:

Lightness Constancy

The ability to perceive the color (or lightness) of an object as constant under varying lighting conditions.

Brightest

Having the most light or luminosity; often used metaphorically to describe highly intelligent or clever individuals.

Brightness Contrast

The appearance of a differently illuminated areas in the field of vision, resulting in the perception of varying levels of light intensity.

Lateral Inhibition

A neurological process where the firing rate of a neuron is decreased due to the activity of neighboring neurons, enhancing contrast in sensory perception.