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The expected average rate of return for a proposed investment of $900,000 in a fixed asset, with a useful life of five years, recognition is

The expected average rate of return for a proposed investment of $900,000 in a fixed asset, with a useful life of five years, recognition is given to the effect of straight-line depreciation on the investment, no residual value, and an expected total net income of $360,000 for the 5 years, is:

a.40%.

b.16%.

c.18.5%.

d.12.5%.

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