Average Rate of Return

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

Project A Project Z

Amount of investment $48,000 $48,000

Useful life 4 years 7 years

Estimated residual value 0 0

Estimated total income over the useful life $7,200 $18,480

Determine the expected average rate of return for each project. Round your answers to one decimal place.

Project A	%
Project Z	%