The Amount of the Average Investment for a Proposed Investment

question 137

Multiple Choice

The amount of the average investment for a proposed investment of $90,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $21,600 for the 4 years, is:

• A) $10,800
• B) $21,600
• C) $ 5,400
• D) $45,000

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Definitions:

Minority Population Growth

The increase in the size of groups within a population that are not part of the majority racial, ethnic, or other demographic segment.

Immigration

The action of coming to live permanently in a foreign country.

Switching Costs

These are the costs that a consumer incurs as a result of changing from one product, service, or supplier to another, including financial, time, and effort expenses.

Excessive Distribution

Excessive distribution occurs when a product is over-distributed or available in too many locations, potentially diluting its brand value and leading to inefficiencies.