Capital Investment Analysis You are evaluating projects 1 and 2. The projects have the following yearly operating profit. Depreciation expense is $2,000 per year for each project. Assume a 10% required rate of return. Year 1 Year 2 Year 3 Year 4 Year 5 Investment Project 1 PV factors are as follows: Years 1 2345 $ 3,370 $ 3,500 $ 4,100 $ 4,270 $ 4,620 $ 18,000 Required: A. Using Average Rate of Return, which project, if any, would you evaluate further and why? PV of $1 0.909 0.826 0.751 0.683 0.621 B. Using Net Present Value analysis, please answer the following questions: 1. Assuming you had $100,000 to invest, which investment Project 2 would you make, if any, and why? 2. Assuming you had $35,000 to invest, which investment would you make, if any, and why? $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 33,200 3.791 PV of Annuity of $1