What is an expected total net income of \$216,000 for the 4 years? - ProProfs Discuss  + Ask Question

# What is an expected total net income of \$216,000 for the 4 years?

The expected average rate of return for a proposed investment of \$600,000 in a fixed asset, with a useful life of four years, straight-line Depreciation, no residual value.

Asked by Huaccounting, Last updated: Aug 31, 2023

### Request 0Follow Share     Answer AnonymouslyAnswer Later Copy Link  J. Goodman, Web Content Writer, San Antonio 9% 216,000 divided 600,000= 216,000 divided by four= 54,000 per year. 54,000 divided 600,000 =9%. The net income formula is calculated by subtracting total expenses from total revenues. The net income equation is relatively simple. It measures excess revenues over total expenses. Net income is a calculation that measures the amount of total revenues that exceed total expenses.

It shows the amount of revenue left over after all expenses have been paid. The rate of return is a profit on an investment over some time, as it is expressed as a portion of the original investment. The period would typically be a year, in which case the rate of return is referred to an annual return.   Huaccounting

18%

Average Rate of Return = Estimated Average Annual Income / Average Investment \$216,000 / 4 = \$54,000 estimated average annual income \$600,000 / 2 = \$300,000 average investment \$54,000 / \$300,000 = .18 or 18%    Search for Google images Select a recommended image
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