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Average Rate of Return The following data are accumulated by Bio Metrics Inc. in evaluating two competing capital investment proposals: Testing Equipment Vehicle Amount of
Average Rate of Return The following data are accumulated by Bio Metrics Inc. in evaluating two competing capital investment proposals: Testing Equipment Vehicle Amount of investment $104,000 $32,000 Useful life 6 years 8 years Estimated residual value 0 0 Estimated total income over the useful life $18,720 $15,360Determine the expected average rate of return for each proposal. If required, round to the nearest whole percent. Testing Equipment ______ % Vehicle ________ %
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