Question
1. Average rate of return The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals: Line Item Description Project C
1.
Average rate of return
The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals:
| Line Item Description | Project C | Project T |
|---|---|---|
| Amount of investment | $40,000 | $28,000 |
| Useful life | 4 years | 7 years |
| Estimated residual value | 0 | 0 |
| Estimated total income over the useful life | $3,600 | $7,350 |
Determine the expected average rate of return for each project. Round your answers to one decimal place.
| Line Item Description | Percentages |
|---|---|
| Project C | fill in the blank % |
| Project T | fill in the blank % |
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Commercial Energy Auditing Reference Handbook
Authors: Steve Doty
2nd Edition
1439851972, 978-1439851975
