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:

Conduct Over Time

Refers to the patterns or manners of behavior that an individual or organization demonstrates consistently over a period.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action within an organization.

Cultural Ethos

The characteristic spirit, moral values, and customs of a community or society.

Moral and Ethical Codes

Principles and standards of behavior that guide individuals and organizations in making decisions that are considered right and good.