Question: ication) eBook Average Rate of Return The following data are accumulated by McDermott Motors Inc. evaluating two competing capital investment proposals: Testing Equipment Diagnostic

ication) eBook Average Rate of Return The following data are accumulated by McDermott Motors Inc. evaluating two competing capital investment proposals: Testing Equipment Diagnostic Software Amount of investment Useful life Estimated residual value Estimated total income over the useful life $76,000 4 years $40,000 5 years $0 $0 $11,500 $11,400 Determine the expected average rate of return for each proposal. If required, round to one decimal place. Testing Equipment Diagnostic Software < % %%

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