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Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project 2 Amount of
Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project 2 Amount of investment $92,000 $96,000 Useful life 4 years 5 years Estimated residual value 0 Estimated total income over the useful life $10,120 $24,000 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A % Project Z %
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