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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 $56,000 $40,000 Useful

The following data are accumulated by Eco Labs, Inc. in evaluating two competing capital investment proposals:

Testing Equipment Vehicle
Amount of investment $56,000 $40,000
Useful life 4 years 5 years
Estimated residual value 0 0
Estimated total income over the useful life $8,400 $10,500

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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