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Average rate of return The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals: Project C Project T $48,000 $76,000 4 years 5 years Amount of investment Useful life Estimated residual value Estimated total income over the useful life $4,800 $17,100 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project C Project T % 0 % 0

Average rate of return The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals: Project C Project T $48,000 $76,000 4 years 5 years Amount of investment Useful life Estimated residual value Estimated total income over the useful life $4,800 $17,100 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project C Project T % 0 % 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Average rate of return The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals: Project C Project T $48,000 $76,000 4 years 5 years 0 0 Amount of investment Useful life Estimated residual value Estimated total income over the useful life $4,800 $17,100 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project C Project T % %
Transcribed Image Text:Average rate of return The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals: Project C Project T $48,000 $76,000 4 years 5 years 0 0 Amount of investment Useful life Estimated residual value Estimated total income over the useful life $4,800 $17,100 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project C Project T % %
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