Raiderlik black board CENGAGE zoombinis G Google eBook Average Rate of Return The following data are accumulated by McDermott Motors Inc. evaluating two competing capital investment proposals: Amount of investment Useful life Estimated residual value Estimated total income over the useful life Testing Equipment Diagnostic Software $76,000 4 years $40,000 5 years 50 50 $11,500 $11,400 Determine the expected average rate of return for each proposal. If required, round to one decimal place. Testing Equipment 0.30 X % Diagnostic Software 0.575 X % Check My Work Divide the estimated average annual income by the average investment. Initialcost plus residual value divided by two equals average investment.