Average Rate of Return

The following data are accumulated by Eco Labs, Inc. in evaluating two competing capital investment proposals:

	Testing Equipment		Vehicle
Amount of investment	$24,000			$40,000
Useful life	4 years			9 years
Estimated residual value	0			0
Estimated total income over the useful life	$2,160			$13,500

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

Testing Equipment	%
Vehicle	%