A 5-year project is estimated to cost $700,000 and have no residual value. If the straight-line depreciation method is used and estimated total income is $231,000, determine the average rate of return giving effect to depreciation on the investment. Round your percentage answer to one decimal place (for example, a value of .1048 rounds to 10.5%).

13.2%

Explanation:

The formula to compute the average rate of return is shown below:

= Average net income ÷ average investment

where,  

Average net income is

= $231,000 ÷ 5 years

= $46,200

And, the average investment would be

= (Initial investment + salvage value) ÷ 2

= ($700,000 + $0) ÷ 2

= $700,000 ÷ 2

= $350,000

Now put these values to the above formula  

So, the rate would equal to

= $46,200 ÷ $350,000

= 13.2%

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

answer decisions made by individual households and firms;