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 $96,000 $84,000

Useful life 4 years 5 years

Estimated residual value 0 0

Estimated total income over the useful life $11,520 $19,950

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

Project A _________%

Project Z __________ %