Question: The following data are accumulated by ChemLab Inc. in evaluating two competing capital investment proposals: Determine the expected average rate of return for each proposal.

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

Determine the expected average rate of return for each proposal.

Amount of investment Useful life Estimated residual value Estimated total income over the useful life Testing Equipment $86,000 6 years Vehicle $30,000 8 years 0 $12,000 $18,060

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