Question

The amount of the estimated average income for a proposed investment of $73,000 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 $30,300, is a.$6,200 b.$30,300 c.$7,575 d.$18,250

Answer 1

Answer: $7,575

Explanation:

Based on the information given in the question, the amount of the estimated average income for a proposed investment will be calculated as:

= Expected total income yield / Number of years

= $30300/4

= $7,575

Therefore, the amount of the estimated average income for the proposed investment is $7575.