The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals: Line Item Description Project C Project T Amount of investment $84,000 $96,000 Useful life 4 years 5 years Estimated residual value 0 0 Estimated total income over the useful life $6,720 $15,600 Determine the expected average rate of return for each project. Round your answers to one decimal place. Line Item Description Percentages Project C fill in the blank 1% Project T fill in the blank 2%
The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals: Line Item Description Project C Project T Amount of investment $84,000 $96,000 Useful life 4 years 5 years Estimated residual value 0 0 Estimated total income over the useful life $6,720 $15,600 Determine the expected average rate of return for each project. Round your answers to one decimal place. Line Item Description Percentages Project C fill in the blank 1% Project T fill in the blank 2%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals:
Line Item Description | Project C | Project T |
---|---|---|
Amount of investment | $84,000 | $96,000 |
Useful life | 4 years | 5 years |
Estimated residual value | 0 | 0 |
Estimated total income over the useful life | $6,720 | $15,600 |
Determine the expected average
Line Item Description | Percentages |
---|---|
Project C | fill in the blank 1% |
Project T | fill in the blank 2% |
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