Average rate of return The following data are accumulated by Specialty Motors Inc. evaluating two competing capital investment proposals: Obj 2 Testing equipment, 15% Testing Equipment Diagnostic Software Amount of investment $540,000 $170,000 Useful life 6 years 8 years Estimated residual value $0 $0 Estimated total income over the useful life $243,000 $88,400 Determine the expected average rate of return for each proposal.