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11 October, 16:40

The amount of the estimated average income for a proposed investment of $60,000 in a fixed asset, giving effect to depreciation (straight-line method), with a useful life of four years, no residual value, and an expected total income yield of $21,600, is what

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  1. 11 October, 18:39
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    Estimated average income is $5,400

    Explanation:

    Proposed investment = $60,000

    Depreciation = Straight-line method

    Useful life = 4 years

    Expected total income yield = $21,600

    To find average investment, we divide the income by the useful life of the investment.

    Therefore, estimated average income = $21,600 : 4 = $5,400
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