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		$86,000		$30,000
Useful life		6 years		8 years
Estimated residual value		0		0
Estimated total income over the useful life		$18,060		$12,000

Determine the expected average rate of return for each proposal. If required, round to the nearest whole percent.

Testing Equipment	_______%
Vehicle	_______%