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Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A PI Amount of investment

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Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A PI Amount of investment $92,000 Useful life 4 years Estimated residual value Estimated total income over the useful life $9,200 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A Project 2 Project A Project 2 $92,000 $96,000 4 years 5 years $9,200 $21,600

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