Question

The amount of the average investment for a proposed investment of $149,000 in a fixed asset...

The amount of the average investment for a proposed investment of $149,000 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total income of $24,300 for the 4 years is

a.$37,250

b.$6,075

c.$74,500

d.$24,300

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Answer #1

Correct option is "c"- 74500

Average investment =[Beginning book value +Ending book value]/2

                         = [149000 + 0]/2

                          = 74500

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