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 $68,000 $92,000 Useful life 4 years 9 years Estimated residual value Estimated total income over the useful life $7,480 $41,400 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A Project Z Average Rate of Return-New Product Hana Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 4,900 units at $232 per unit. The equipment has a cost of $455,700, residual value of $34,300, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor $38.00 Direct materials 149.00 Factory overhead (including depreciation) 26.00 Total cost per unit $213.00 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %