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	$20,000			$60,000
Useful life	4 years			7 years
Estimated residual value	0			0
Estimated total income over the useful life	$1,600			$13,650

Determine the expected average rate of return for each project. Round your answers to one decimal place.

Project A	4%
Project Z	fill in the blank %