Question
The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount of investment $52,000 $32,000 Useful
The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals:
| 3D Printer | Truck | ||||
| Amount of investment | $52,000 | $32,000 | |||
| Useful life | 4 years | 7 years | |||
| Estimated residual value | 0 | 0 | |||
| Estimated total income over the useful life | $4,680 | $10,080 | |||
Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place.
| 3D Printer | |
| Truck |
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
978-1119496496
