The Expected Average Rate of Return for a Proposed Investment

question 54

Multiple Choice

The expected average rate of return for a proposed investment of $500,000 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) 18%
• B) 48%
• C) 24%
• D) 12%

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Definitions:

Educational Psychologists

Specialists in the psychological study of teaching and learning, who apply theories of cognitive, moral, and social development to educational practices.

Counselling Psychologists

Professionals who specialize in aiding individuals in managing personal and interpersonal challenges through psychological theories and techniques.

Experimental Psychology

A branch of psychology that studies the human mind and behavior through controlled experiments to understand psychological phenomena.

Cognitive Psychology

The area of psychology focused on understanding mental activities, such as thinking, perception, memory, and learning.