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1. Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount
1. 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 | $20,000 | $24,000 | |||
| Useful life | 4 years | 9 years | |||
| Estimated residual value | 0 | 0 | |||
| Estimated total income over the useful life | $3,000 | $11,340 | |||
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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