Respuesta :
Answer: the correct answer is a. Machine B
Explanation:
Machine A average rate return
40000 out of 300000. It means that 300000 is 100% and $ 40000 is X. We apply a simple three rule:
40000 X X= 4000000/300000
300000 100% X= 13.33%
Machine B average rate return
50000 out of 250000. It means that 250000 is 100% and $ 50000 is X. We apply a simple three rule:
50000 X X= 5000000/250000
250000 100% X= 20%
Machine C average rate return
$75,000 out of $500,000. It means that $500,000 is 1005 and $75,000 is X. We apply a simple three rule
$75,000 X X=7500000/500000
$500,000 100% X= 15%
The highest average is the one onf Machine B
The average rate of return is the return gained over the total amount of investment. It is determined by taking into consideration the average income earned and the average amount of investments made for the particular investment avenue.
Machine B is having the highest average rate of return.
Computations:
Given:
Machine A:
Estimated Average Income= $40,000
Average Investment= $300,000
[tex]\text{Average Rate of Return}=\dfrac{\text{Average Income}}{\text{Average Investment}}\\\\=\dfrac{\$40,000}{\$300,000}\times100\\\\=13.33\%[/tex]
Machine B:
Estimated Average Income= $50,000
Average Investment= $250,000
[tex]\text{Average Rate of Return}=\dfrac{\text{Average Income}}{\text{Average Investment}}\\\\=\dfrac{\$50,000}{\$250,000}\times100\\\\=20\%[/tex]
Machine C:
Estimated Average Income= $75,000
Average Investment= $500,000
[tex]\text{Average Rate of Return}=\dfrac{\text{Average Income}}{\text{Average Investment}}\\\\=\dfrac{\$75,000}{\$500,000}\times100\\\\=15\%[/tex]
To know more about the average rate of return, refer to the link:
https://brainly.com/question/24232401
