Rate of return for a proposed investment


The expected average rate of return for a proposed investment of $500,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $240,000 for the 4 years, is:

A. 18%

B. 48%

C. 24%

D. 12%

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Accounting Basics: Rate of return for a proposed investment
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