Determine expected average rate of return for each proposal

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Average Rate of Return

The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals:

                                                                             3D Printer            Truck

Amount of investment                             $84,000                 $96,000

Useful life                                               4 years                  5 years

Estimated residual value                               0                           0

Estimated total income over the useful life      $11,760            $26,400

Question 1: Determine the expected average rate of return for each proposal.

Reference no: EM132529106

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