Respuesta :

If a company uses straight-line depreciation, the average investment is calculated as: Average Investment = (Beginning book value + salvage value)/2.

What is average investment?

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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