Average Rate of Return

Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck $84,000 $96,000 4 years 5 years Amount of investment Useful life Estimated residual value Estimated total income over the useful life $11,760 $26,400 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place 3D Printer Truck