will rate

Average Rate of Return The following data are accumulated by GreenApple Motors Inc. evaluating two competing capital investment proposals: Testing Equipment Diagnostic Software Amount of investment $150,000 $75,000 Useful life 8 years 5 years Estimated residual value $20,000 $2,500 Estimated total income over the useful life $122,400 $42,625 Determine the expected average rate of return for each proposal. Testing Equipment X % X % Diagnostic Software