Question
The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $36,000 $60,000 Useful
The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals:
| Project A | Project Z | ||||
| Amount of investment | $36,000 | $60,000 | |||
| Useful life | 4 years | 7 years | |||
| Estimated residual value | 0 | 0 | |||
| Estimated total income over the useful life | $3,240 | $15,750 | |||
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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ISE Business Accounting Volume 1
Authors: Frank Wood, Alan Sangster
8th Edition
0273638394, 9780273638391
