The Expected Average Rate of Return for a Proposed Investment

Multiple Choice

The expected average rate of return for a proposed investment of $4,800,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $10,560,000 over the 20 years is

A) 24%
B) 22%
C) 45%
D) 10%