Average Rate of Return The following data are accumulated by McDermott Motors Inc. evaluating two competing capital investment proposals: Testing Equipment Diagnostic Software Amount of investment $52,000 $48,000 Useful life 4 years 5 years Estimated residual value $0 $0 Estimated total income over the useful life $8,320 $12,600 Determine the expected average rate of return for each proposal. If required, round to one decimal place. Testing Equipment Diagnostic Software