Question
The following data are accumulated by GreenApple Motors Inc. evaluating two competing capital investment proposals: Testing Equipment Diagnostic Software Amount of investment $28,000 $80,000 Useful
The following data are accumulated by GreenApple Motors Inc. evaluating two competing capital investment proposals:
| Testing Equipment | Diagnostic Software | |||
| Amount of investment | $28,000 | $80,000 | ||
| Useful life | 4 years | 9 years | ||
| Estimated residual value | $0 | $0 | ||
| Estimated total income over the useful life | $2,520 | $30,600 | ||
Determine the expected average rate of return for each proposal. If required, round to one decimal place.
| Testing Equipment | fill in the blank 1 % |
| Diagnostic Software | fill in the blank 2 % |
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Advances In Accounting Education Teaching And Curriculum Innovations Volume 23
Authors: Thomas G. Calderon
1st Edition
1789733944, 978-1789733945
