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 $76,000 $48,000 Useful life 4 years 7 years Estimated residual value Estimated total income over the useful life $7,600 $12,600 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer % Truck
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 $76,000 $48,000 Useful life 4 years 7 years Estimated residual value Estimated total income over the useful life $7,600 $12,600 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer % Truck
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
$76,000
$48,000
Useful life
4 years
7 years
Estimated residual value
Estimated total income over the useful life
$7,600
$12,600
Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place.
3D Printer
%
Truck
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