4) Orange Inc. is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows: Option 1 Option 1 Option 2 Option 2 Year Net Income Net Cash Flows Net Income Net Cash Flows 1 $35,000 $47,000 2 30,000 41,000 3 22,000 30,000 4 10,000 5 5,00010,000 $14,000 $18,000 14,000 4 18,000 14,000 18,000 18,000 14,000 18 14.00018,000 $70,000 $90,000 15,000 $102,000 $143,000 Each project requires an investment of $80,000. Straight-line depreciation will be used, and no residual value is expected. The required rate of return is 10% for purposes of the net present value analysis. Instructions: a) Calculate the average rate of return for both options. b) Calculate the net present value for both options. Use the tables in appendix A of the textbook. c) Based on your answers to parts (a) and (b), which investment should the company invest in? (15 points)