Question: Brief Exercise 26.2 (Static) Using Return on Investment to Evaluate Proposals (LO26-3) Bramblett Recording Studio is considering two investment proposals (1 and 2). Data for

 Brief Exercise 26.2 (Static) Using Return on Investment to Evaluate Proposals

Brief Exercise 26.2 (Static) Using Return on Investment to Evaluate Proposals (LO26-3) Bramblett Recording Studio is considering two investment proposals (1 and 2). Data for the two proposals are presented here. Cost of investment Estimated salvage value Average estimated net income 2 $ 80,000 $ 86,000 16,000 24,000 17,280 13,750 Calculate the return on average investment for both proposals. ROI Proposal 1 Proposal 2 % %

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