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Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount of

Average Rate of Return

The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals:

3D Printer Truck
Amount of investment $40,000 $36,000
Useful life 4 years 5 years
Estimated residual value 0 0
Estimated total income over the useful life $3,200 $7,200

Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place.

3D Printer %
Truck %

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