The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $64,000 $84,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $8,960 $43,470 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A % Project Z %
The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $64,000 $84,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $8,960 $43,470 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A % Project Z %
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 19PROB
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The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals:
Project A | Project Z | ||||
Amount of investment | $64,000 | $84,000 | |||
Useful life | 4 years | 9 years | |||
Estimated residual value | 0 | 0 | |||
Estimated total income over the useful life | $8,960 | $43,470 |
Determine the expected average
Project A | % |
Project Z | % |
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