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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 Z Amount of
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 $28,000 $88,000 Useful life 4 years 9 years Estimated residual value Estimated total income over the useful life $2,240 $25,740 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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