Average Rate of Return

The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals:

	3D Printer			Truck
Amount of investment		$40,000		$50,000
Useful life		7 years		10 years
Estimated residual value		$3,000		$6,000
Estimated total income over the useful life		$24,080		$36,400

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

3D Printer	%
Truck	%