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The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $84,000 $92,000 Useful
The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals:
Project A | Project Z | ||||
Amount of investment | $84,000 | $92,000 | |||
Useful life | 4 years | 5 years | |||
Estimated residual value | 0 | 0 | |||
Estimated total income over the useful life | $12,600 | $25,300 |
Determine the expected average rate of return for each project. Round your answers to one decimal place.
Project A | |
Project Z |
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