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 $76,000 $40,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $11,400 $18,900 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer fill in the blank 1 % Truck fill in the blank 2 %
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 $76,000 $40,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $11,400 $18,900 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer fill in the blank 1 % Truck fill in the blank 2 %
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 21E: Net present value-unequal lives Bunker Hill Mining Company has two competing proposals: a processing...
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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 $76,000 $40,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $11,400 $18,900 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place.
3D Printer fill in the blank 1 % Truck fill in the blank 2 %
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