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Evgen [1.6K]
3 years ago
7

The expected average rate of return for a proposed investment of $650,000 in a fixed asset, with a useful life of 4 years, strai

ght-line depreciation, no residual value, and an expected total net income of $240,000 for the 4 years, is
Business
1 answer:
nexus9112 [7]3 years ago
8 0
The expected average rate of return in the fixed asset above is 36.92%. The rate of return is the income or loss of a proposed investment in a specified amount of time. In this case, a company wants to buy a 4-year life fixed asset which can increase the company's income by $240,000. We can calculate the rate of return by dividing the net income from the investment with the proposed investment to obtain the portion of return received from the investment<span>. Formula: (Net Income From The Investment/Proposed Investment) x 100%.</span>
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7 0
4 years ago
Read 2 more answers
Flesch corporation produces and sells two products. in the most recent month, product c90b had sales of $26,100 and variable exp
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