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if a company uses straight-line depreciation, the average investment is calculated as: (check all that apply.) multiple select question. (beginning book value - salvage value)/2. (beginning book value salvage value)/2. (initial investment salvage value)/2. initial investment - salvage value)/2.

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The average investment is determined using straight-line depreciation as follows: Average Investment = (Beginning Book Value + Salvage Value)/2.

Investments on average mean:

The start-up capital or sum of money required to launch a firm can be referred to as average investment.

Using the straight-line method The formula below can be used to get the average investment:

Average Investment equals (Starting book value + Salvage value) / 2.

Conclusion The average investment is equal to (starting book value plus salvage value) / 2.

Subtract the initial cash investment from the capital asset's projected residual value. By dividing this sum by the number of years the asset will be in use, you can calculate yearly depreciation. Depreciation is subtracted from the projected cash flow.

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