Average Rate of Return The following data are accumulated by McDermott Motors Inc. evaluating two competing capital investment proposals: Testing Equipment Diagnostic Software $40,000 $24,000 Amount of investment Useful life 4 years 7 years Estimated residual value $0 $0 Estimated total income over the useful life $4,400 $ 7,980 Determine the expected average rate of return for each proposal. If required, round to one decimal place. Testing Equipment % Diagnostic Software %