Question: The following data are accumulated by Bio-Tech Inc. in evaluating two competing capital investment proposals: Determine the expected average rate of return for eachproposal. Amount

The following data are accumulated by Bio-Tech Inc. in evaluating two competing capital investment proposals:

Determine the expected average rate of return for eachproposal.

Amount of investment Useful life Estimated residual value Estimated total income over the useful life Testing Equipment $1,000,000 Diagnostic Software $760,000 10 years $456,000 8 years 0 5360,000

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