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Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: CLICK HERE TO PLACE AN ORDER 3D Printer Truck Amount of investment $24,000 $32,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $3,600 $16,560 Determine the expected average rate of return for each proposal. If …
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