To determine the average investment over the life of an asset,divide the total depreciation of the investment by two.

Question

Quizplus · Accepted Answer

To determine the average investment over the life of an asset, you need to add the initial cost of the asset to the total depreciation and then divide it by the number of years in its useful life. Dividing the total depreciation by two does not give an accurate average investment amount.

To Determine the Average Investment Over the Life of an Asset,divide