If the straight-line depreciation method is used, the annual average investment amount used in calculating rate of return is calculated as (beginning book value + ending book value)/2.

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This is true. The straight-line depreciation method assumes that the asset depreciates evenly over its useful life, so the annual average investment amount is calculated by taking the beginning book value (the initial cost of the asset) plus the ending book value (the salvage value at the end of the asset's useful life) and dividing by 2. This amount is used in calculating the rate of return on the investment.

If the Straight-Line Depreciation Method Is Used, the Annual Average