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20 March, 22:29

The expected average rate of return for a proposed investment of $800,000 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $360,000 for the 4 years, is

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  1. 21 March, 00:39
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    Average rate=net income/investment

    r=360,000:800,000

    =0.45

    divide by 4

    0.45:4=0.113*100=11.3%
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