The expected average rate of return for a proposed investment of $636,800 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $191,560 for the 4 years is (round to two decimal points)

15.96

Explanation:

The expected rate of return will be the Average income divided by the average cost.

It is stated that the asset has a useful life of 4 years with no residual value so at the end of 4 years it will be worth $0.

The Average Cost/ Value of the Asset is calculated as;

= (Beginning Asset value - Ending Asset Value) / 2

= (600,000 - 0) /2

= 300,000

Total Income of $191,560 for the 4 years so Average income will be,

= 191,560/4

= $47,890

Expected Average Rate of Return = 47,890/300,000

= 15.96%

i do believe its modular luck

explanation:

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy