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 | $96,000 | $52,000 |
| Useful life | 4 years | 5 years |
| Estimated residual value | 0 | 0 |
| Estimated total income over the useful life | $14,400 | $16,250 |
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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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Madhav T. Rajan, Chris M. Ittner
13th Edition
0131355589, 978-0131355583
