The expected average rate of return for a proposed investment of $4,250,000 in a fixed asset, using straight-line depreciation, with a useful life of 15 years, no residual value, and an expected total net income of $9,562,500 over the 15 years is: a. 15% b. 22.5% c. 10% d. 7.5%

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 1BE: Average rate of return Determine the average rate of return for a project that is estimated to yield...
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Kindly help me with this question general accounting

The expected average rate of return for a proposed investment of
$4,250,000 in a fixed asset, using straight-line depreciation, with a useful
life of 15 years, no residual value, and an expected total net income of
$9,562,500 over the 15 years is:
a. 15%
b. 22.5%
c. 10%
d. 7.5%
Transcribed Image Text:The expected average rate of return for a proposed investment of $4,250,000 in a fixed asset, using straight-line depreciation, with a useful life of 15 years, no residual value, and an expected total net income of $9,562,500 over the 15 years is: a. 15% b. 22.5% c. 10% d. 7.5%
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