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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Business

Holly Ortega

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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Akira Moody · Answer 1

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