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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 $92,000 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 | $92,000 | |||
| Useful life | 4 years | 9 years | |||
| Estimated residual value | 0 | 0 | |||
| Estimated total income over the useful life | $6,720 | $43,470 | |||
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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