ABC

Co. purchased a fixed asset for

$100,000

, with a useful life of five years, residual value of

$9,000

, and an expected total net income of

$21,600

for 5 years. What is the amount of the average investment?\ Average investment

=

Initial cost + salvage value

/2

\

$9000

\

$100,000

\

$54,500

\

$37.500

ABC C0. purchased a fixed asset for $100,000, with a useful life of five years, residual value of $9,000, and an expected total net income of $21,600 for 5 years. What is the amount of the average investment? Average investment = Initial cost + salvage value /2 (A) $9000 (B) $100,000 (C) $54,500 (D) $37.500