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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 | $20,000 | |||
Useful life | 4 years | 5 years | |||
Estimated residual value | 0 | 0 | |||
Estimated total income over the useful life | $5,600 | $6,000 |
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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