The amount of the estimated average income for a proposed investment of $60,000 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 $22,300, is: a. $15,000. b. $10,800. c. $5,400. d. $5,575.
As per straight line depreciation method, depreciation is:
=Cost of asset-residual value/life of asset
=(60000-0)/4
=15000
The amount of the estimated average income for a proposed investment of $60,000 in a fixed...
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