Average Rate of Return The following data are accumulated by McDermott Motors Inc, evaluating two competing capital investment proposals: Amount of investment Useful life Estimated residual value Testing Equipment Diagnostic Software 544,000 $40,000 9 years 50 $0 $6,600 $22,500 4 years Estimated total income over the useful life Determine the expected average rate of return for each proposal. If required, round to one decimal place, Testing Equipment 3.75 X % Diagnostic Software 6.25 X %