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Determine the expected average rate of return

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Question - 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

$52,000

$48,000

Useful life

4 years

7 years

Estimated residual value

0

0

Estimated total income over the useful life

$4,160

$15,120

Required - Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place.

Reference no: EM133069975

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