Answer fully.

Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $56,000 $84,000 Useful life 4 years 5 years Estimated residual value 0 0 Estimated total income over the useful life $8,960 $22,050 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A 0.08 X % Project Z % Feedback Check My Work Divide the estimated average annual income by the average investment. Investment cost plus estimated residual value, divided by two, equals average investment