Question: Need some assistance Average Rate of Return The average rate of return is another method that does not use present value and is commonly used

Need some assistance

Need some assistance Average Rate of Return The average rate of return

Average Rate of Return The average rate of return is another method that does not use present value and is commonly used in making capital investment decisions. Unlike the cash payback method, the average rate of return focuses on income lather than cash ow. Assume that the investment involves an initial outlay of $100,000 with a veryear useful life and no salvage value under straightrline depreciation. The revenues are as follows: Year 1 , $20,000, Year 2 , $30,000, Year 3 , $40,000, Year 4 , $50,000 and Year 5 - $60,000. Use the minus Sign to indicate a net loss. If an amountis zero, enter "El". Year Revenues Expenses Net Income Year 1 Net Income (loss) = Year 2 Net Income (loss) Year 3 Net Income (loss) Year 4 Net Income (loss) a a s a g ii a a 4.. a Year 5 Net Income (loss) Total Net Income (ve years) = Average Net Income : Average Rate of Return : $ = X % Fem Vcheck Mymk Complete the list mannual revenues as noted in the problem. For expenses, compute the stralgtrHIne depreciation for this easel over veyears

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