Average Rate of Return The following data are accumulated by McDermott Motors Inc. evaluating two competing capital investment proposals: Testing Equipment Diagnostic Software Amount of investment $36,000 $64,000 Useful life 5 years Estimated residual value $0 $0 Estimated total income over the useful life $3,600 $12,000 Determine the expected average rate of return for each proposal. If required, round to one decimal place. 4 years Testing Equipment % Diagnostic Software %