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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 $40,000 $50,000    
Useful life 7 years 10 years    
Estimated residual value $3,000 $6,000    
Estimated total income over the useful life $24,080 $36,400    

Determine the expected average rate of return for each proposal. If required, round to the nearest whole percent.

3D Printer %
Truck %
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