dairysoto2124 dairysoto2124
  • 13-05-2017
  • Business
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The expected average rate of return for a proposed investment of $800,000 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $360,000 for the 4 years, is

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Aliwohaish12
Aliwohaish12 Aliwohaish12
  • 13-05-2017
Average rate=net income/investment
r=360,000÷800,000
=0.45
divide by 4
0.45÷4=0.113×100=11.3%
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