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 $48,000 Useful life 4 years 7 years Estimated residual value Estimated total income over the useful life $7,600 $12,600 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer % Truck

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 $48,000 Useful life 4 years 7 years Estimated residual value Estimated total income over the useful life $7,600 $12,600 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer % Truck

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.21E

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