Question
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
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 | $64,000 | $84,000 |
| Useful life | 4 years | 7 years |
| Estimated residual value | 0 | 0 |
| Estimated total income over the useful life | $6,400 | $26,460 |
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 1% |
| Project T | fill in the blank 2% |
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1st Edition
0367567962, 978-0367567965
