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

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Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Amount of investment Useful life Estimated residual value Estimated total income over the useful life Project A Project Z $88,000 $40,000 4 years 5 years 0 0 $10,560 $9,500 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A Project Z % %

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