The Amount of the Estimated Average Income for a Proposed

question 46

Multiple Choice

The amount of the estimated average income for a proposed investment of $90,000 in a fixed asset, giving effect to depreciation (straight-line method) , with a useful life of four years, no residual value, and an expected total income yield of $21,600, is:

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

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Definitions:

Consumer Price Index

A benchmark capturing the average movement over time in the outlay of urban buyers for a predetermined mix of consumer goods and services.

Consumer Price Index

An index measuring the change over time in the price level of consumer goods and services purchased by households.

Base Year

A reference point in time used for comparative purposes, particularly in the context of economic and financial indices.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, changing over time.