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The following data are accumulated by Eco Labs, Inc. in evaluating two competing capital investment proposals: Testing Equipment Vehicle Amount of investment $88,000 $44,000 Useful
The following data are accumulated by Eco Labs, Inc. in evaluating two competing capital investment proposals:
Testing Equipment | Vehicle | ||||
Amount of investment | $88,000 | $44,000 | |||
Useful life | 4 years | 9 years | |||
Estimated residual value | 0 | 0 | |||
Estimated total income over the useful life | $10,560 | $20,790 |
Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place.
Testing Equipment | % |
Vehicle | % |
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