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elena-14-01-66 [18.8K]
3 years ago
7

An 8-year project is estimated to cost $480,000 and has no residual value. If the straight-line depreciation method is used and

the average rate of return is 8%, determine the average annual income.
Mathematics
1 answer:
Artyom0805 [142]3 years ago
3 0

Based on the information given the average annual income is $19,200.

Using this formula

Estimated average annual income=(Estimated cost+Residual value)/2× Average rate of return

Let plug in the formula

Estimated average annual income=($480,000+$0)/2×8%

Estimated average annual income=$240,000×8%

Estimated average annual income=$19,200

Inconclusion  the average annual income is $19,200.

Learn more about average annual income here:brainly.com/question/6070671

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