Average Rate of Return The following data are accumulated by GreenApple Motors Inc. evaluating two competing capital investment proposals:   Testing Equipment Diagnostic Software Amount of investment $40,000   $72,000   Useful life 4 years   5 years   Estimated residual value $0   $0   Estimated total income over the useful life $5,200   $19,800   Determine the expected average rate of return for each proposal. If required, round to one decimal place. Testing Equipment fill in the blank 1 % Diagnostic Software fill in the blank 2 %

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.