The following data are accumulated by Eco-Labs, Inc. in evaluating two competing capital investment proposals: Amount of investment Testing equipment: 80,000 Vehicle 28,000 Useful Life Testing equipment: 6 years Vehicle 8 years Estimated residual value Testing equipment 0 Vehicle 0 Estimated total income over the useful life: Testing equipment 13,200 Vehicle 14,000 1. On exercise 10-1, what is the expected average rate of return for testing equipment? (Points: 15) 5.5% 12.5% 18.5% 21.5% 2. On exercise 10-1, what is the expected average rate of return for the vehicle? (Points: 15) 8.75% 12.5% 25% 28.5%