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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 $$55,000$ $$50,000$

Useful life $12$ years $15$ years

Estimated residual value $$5,000$ $$6,000$

Estimated total income over the useful life $$57,600$ $$63,000$

Determine the expected average rate of return for each project.

Project A fill in the blank $1$

$\%$

Project Z fill in the blank $2$

$\%$