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 $52,000 $72,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $6, 760 $30, 780 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 3PB: Net present value method, present value index, and analysis for a service company First United Bank...
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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 $52,000 $72,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $6, 760 $30, 780 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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