Question: Answer fully. Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z

Answer fully.

Answer fully. Average Rate of Return The following data are accumulated by

Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $56,000 $84,000 Useful life 4 years 5 years Estimated residual value 0 0 Estimated total income over the useful life $8,960 $22,050 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A 0.08 X % Project Z % Feedback Check My Work Divide the estimated average annual income by the average investment. Investment cost plus estimated residual value, divided by two, equals average investment

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