Average rate return: the following data accumulate by watershed inc. and evaluating two competing capital investment proposal: amount invested- $80,000 project A and project Z $52,000 Useful life- project A 4 years and project Z 5 years Estimate residual value- project A 0 and project Z 0 Estimate the total income over the useful life. Project A $8,800 project Z $11,050 Determine the expected average rate of return for each project. Round your answer to one decimal place.
Average rate return: the following data accumulate by watershed inc. and evaluating two competing capital investment proposal: amount invested- $80,000 project A and project Z $52,000 Useful life- project A 4 years and project Z 5 years Estimate residual value- project A 0 and project Z 0 Estimate the total income over the useful life. Project A $8,800 project Z $11,050 Determine the expected average rate of return for each project. Round your answer to one decimal place.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Average rate return:
the following data accumulate by watershed inc. and evaluating two competing capital investment proposal:
amount invested- $80,000 project A and project Z $52,000
Useful life- project A 4 years and project Z 5 years
Estimate residual value- project A 0 and project Z 0
Estimate the total income over the useful life. Project A $8,800 project Z $11,050
Determine the expected average rate of return for each project. Round your answer to one decimal place.
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