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1 Awape Rate of Return Method, Net Present Value Method, and analysis for a Service Company The capital investment Committee of Ells Transport and Storage

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1 Awape Rate of Return Method, Net Present Value Method, and analysis for a Service Company The capital investment Committee of Ells Transport and Storage Inc. is considering to investment projects. The are as follows Warehouse Tracking Technology ns and net cash flows from each investment Net Income from Operations ch Flow $100 $61.400 $135,000 $34.400 51.400 125,000 34.400 36,400 110,000 34.400 100.000 26.400 100,000 34.400 108,000 (3.600) 70,000 34.400 100,000 $172,000 $540,000 $172,000 $540,000 Each project is an investment of $35.000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 15% for purposes of the nat present valueW6 Assignment 1 Content Area Present Value of $1 at Compound Interest Year 64 104 124 154 204 0.943 0.909 0.093 0.870 0.890 0.826 0.797 0.540 0.750 0.712 0.792 0.83 0.635 0.621 0.567 0.705 0.665 0.375 0.404 0.327 0.31 0.264 0.556 0.316 0.322 0.247 Red 1a. Compute the average rate of return for each investment of required, round your to one decimal place Average Rate of Retur Warehouse Tracking Technology 1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest dollar Warehouse Tracking Technology Present value of net cash flow total Amount to be invested Net present value 2. The et present value exceeds the selected rate established for discounted cash flow (154). While the quantitative factors, the investment should be selected, does not. Thus, considering only

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