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Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: Amount of investment Useful
Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: Amount of investment Useful life Estimated residual value Estimated total income over the useful life 3D Printer $52,000 Truck 4 years $92,000 5 years 0 0 $7,280 $26,450 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer % Truck 5.75 %
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