8. June Co. is evaluating a project requiring a capital expenditure of $620,000. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows:

Year	Net Income	Net Cash Flow
1	$ 45,000		$200,000
2	85,000		240,000
3	5,000		160,000
4	15,000		170,000
	$150,000		$770,000

The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively.

Determine: (a) the average rate of return on investment, giving effect to depreciation on the investment, and (b) the net present value.