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Sunday, October 4, 2015

The following data are accumulated by Eco-Labs, Inc. in evaluating two competing capital investment proposals

EX 10-1 The following data are accumulated by Eco-Labs, Inc. in evaluating two competing capital investment proposals:

Testing Equipment Vehicle
Amount of investment $80,000 $28,000
Useful life 6 years 8 years
Estimated residual value 0 0
Estimated total income over the useful life $13,200 $14,000

Determine the expected average rate of return for each proposal. Round to one decimal place.

Click here for the solution: The following data are accumulated by Eco-Labs, Inc. in evaluating two competing capital investment proposals