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eBook Show Me How Question Content Area Average rate of return The following data are accumulated by Patterson Inc. in evaluating two competing capital investment
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Average rate of return
The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals:
Line Item Description | Project C | Project T |
---|---|---|
Amount of investment | $96,000 | $52,000 |
Useful life | 4 years | 5 years |
Estimated residual value | 0 | 0 |
Estimated total income over the useful life | $14,400 | $16,250 |
Determine the expected average rate of return for each project. Round your answers to one decimal place.
Line Item Description | Percentages |
---|---|
Project C | fill in the blank 1% |
Project T | fill in the blank 2% |
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