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Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two...

Average Rate of Return

The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals:

3D Printer Truck
Amount of investment $56,000 $76,000
Useful life 4 years 9 years
Estimated residual value 0 0
Estimated total income over the useful life $8,960 $37,620

Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place.

3D Printer %
Truck %
Business   Accounting   
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