FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals:

  3D Printer Truck
Amount of investment $36,000     $24,000  
Useful life 4 years     5 years  
Estimated residual value 0     0  
Estimated total income over the useful life $5,760     $6,600  

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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Divide the estimated average annual income by the average investment. Investment cost plus residual value, divided by two, equals average investment.

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Your answer is incorrect. 

Divide the estimated average annual income by the average investment. Investment cost plus residual value, divided by two, equals average investment.

Can you please redo it? Thanks

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