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The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A - Amount of investment Useful life $52,000 4

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The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A - Amount of investment Useful life $52,000 4 years Project 2 $60,000 5 years Estimated residual value Estimated total income over the useful life $6,760 $15,000 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A 5.2 X % Project z 7.1 X %

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