The expected average rate of return for a proposed investment of $788,200 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net incom...

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The expected average rate of return for a proposed investment of $788,200 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net incom...

The expected average rate of return for a proposed investment of $788,200 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $179,640 for the 4 years is (round to two decimal points)

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Answer 1

Answer #1

Average income = $179,640 / 4 = $44,910

Average investment = ($788,200 + 0) / 2 = $394,100

Average rate of return = Average income / Average investment = $44,910 / $394,100 = 11.40%

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Answer 2

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The expected average rate of return for a proposed investment of $788,200 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net incom...

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The expected average rate of return for a proposed investment of $788,200 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net incom...

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Add Answer to: The expected average rate of return for a proposed investment of $788,200 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net incom...

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The expected average rate of return for a proposed investment of $788,200 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net incom...