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An asset (investment) costs $112,000, has a ten-year useful life and a $12,000 residual value. The investment generates sales revenue $56,000 per year. Cash expenses
An asset (investment) costs $112,000, has a ten-year useful life and a $12,000 residual value. The investment generates sales revenue $56,000 per year. Cash expenses related to this investment are expected to be around $27,000 per year, and straight-line depreciation expense for this asset is $10,000 per year. Calculate the average rate of return for this investment (round to 00.0%).
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