5.

6.

The expected average rate of return for a proposed investment of $800,000 in a fixed asset with a useful life of four years, straight-line depreciation, no residual valoe, and an expected total net income of $360,000 for the four years is a. 22.5% b. 20% c. 11.3% d. 45% T-Bone Company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $150,000. The present value of the future cach flows is $142,000. Sbould the compary invest in this project? a. no, because net present value is $9,000 b. yes, because net present value is $9,000 c. no, because net present value is $8,000 d. no, because net present value is +$9,000