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The expected average rate of return for a proposed investment of $625,000 in a fixed asset with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $250,000 for the 5 years, is which of the following?

a.16%
b.50%
c.40%
d.18%

1 Answer

2 votes

Answer:

C. 40%

Step-by-step explanation:

User Lavon
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