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The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount of investment $68,000 $20,000 Useful
The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals:
3D Printer | Truck | ||||
Amount of investment | $68,000 | $20,000 | |||
Useful life | 4 years | 7 years | |||
Estimated residual value | 0 | 0 | |||
Estimated total income over the useful life | $6,120 | $5,950 |
Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place.
3D Printer | fill in the blank 1% |
Truck | fill in the blank 2% |
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