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	$125,000	$140,000
Useful life	10 years	12 years
Estimated residual value	$5,000	$10,000
Estimated total income over the useful life	$65,000	$108,000

Determine the expected average rate of return for each project.

Line Item Description	Percentage
Project C
Project T