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 $64,000 $48,000 Useful life 4 years 5 years Estimated residual value Estimated total income over the useful life $5,120 $9,600 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer % Truck %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
$64,000
$48,000
Useful life
4 years
5 years
Estimated residual value
Estimated total income over the useful life
$5,120
$9,600
Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place.
3D Printer
%
Truck
%
Transcribed Image Text: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 $64,000 $48,000 Useful life 4 years 5 years Estimated residual value Estimated total income over the useful life $5,120 $9,600 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer % Truck %
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