1. Average rate of return

Average Rate of Retur The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $20,000 $96,000 Useful life 4 years 7 years Estimated residual value 0 0 Estimated total income over the useful life $2,600 $35,280 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A % Project 2 %