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The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals: Line Item Description Project C Project T Amount of investment
The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals:
| Line Item Description | Project C | Project T |
|---|---|---|
| Amount of investment | $125,000 | $140,000 |
| Useful life | 10 years | 12 years |
| Estimated residual value | $5,000 | $10,000 |
| Estimated total income over the useful life | $65,000 | $108,000 |
Determine the expected average rate of return for each project.
| Line Item Description | Percentage |
|---|---|
| Project C | fill in the blank 1% |
| Project T | fill in the blank 2% |
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Measurement And Internal Audit Operations
Authors: Andrew Fight
1st Edition
184112401X, 978-1841124018
