If a company uses straight-line depreciation, the average investment is calculated as: Average Investment = (Beginning book value + salvage value)/2.
Average investment can be defined as the start up capital or amount of money that will be needed to start up a business.
Using straight line method Average investment can be calculated using this formula:
Average Investment = (Beginning book value + Salvage value)/2
Inconclusion Average Investment = (Beginning book value + salvage value)/2.
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