The expected average rate of return for a proposed investment of $450,200 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total income of $175,480 for the 4 years is (round to two decimal places) a.19.49% b.9.74% c.0.39% d.0.78%

The average annual amount of cash flow produced over the course of an investment is the average rate of return. This rate is derived by adding up all anticipated cash flows and dividing it by the anticipated lifespan of the investment.
Investors frequently use it to choose whether to invest in a particular asset. This calculation's primary error is that it disregards the time worth of money.
The value of cash flows from later times is lower than that of cash flows from more recent eras. Furthermore, generating accurate cash flow projections for future periods might be challenging.

Average Investment = (Initial Cost + Residual Value) / 2

That is, Average investment becomes $450,200/2 = $225,100.

Now, Estimated average annual income = Total net income / Useful life

That is, Estimated average annual income = $175,480/4 = $43,870.

Average Rate of Return = Estimated Average Annual Income / Average

Therefore,

Average rate of return = ($175,480/$225,100)*100 = 19.48%.

Know more about Average rate of return with the help of the given link:

https://brainly.com/question/23876602

#SPJ4