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Average Rate of Return The following data are accumulated by Eco Labs, Inc. in evaluating two competing capital investment proposals: Amount of investment Useful
Average Rate of Return The following data are accumulated by Eco Labs, Inc. in evaluating two competing capital investment proposals: Amount of investment Useful life Estimated residual value Estimated total income over the useful life Testing Equipment Vehicle $72,000 $40,000 4 years 5 years 0 0 $6,480 $9,000 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. Testing Equipment Vehicle % %
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