Gomez Corporation is considering two alternative investment proposals with the following data: Proposal X Investment Useful life Estimated annual net cash inflows for 8 years Residual value Depreciation method Required rate of return O 14.71% O 26.62% O 2.79% $850,000 O 2.88% 8 years $125,000 What is the simple rate of return for Proposal X? $40,000 Straight-line 14% Proposal Y $468,000 8 years $78,000 $- Straight-line 10%

Gomez Corporation is considering two alternative investment proposals with the following data: What is the simple rate of return for Proposal X? 14.71% 26.62% 2.79% 2.88%