Average Rate of Return Method and Analysis

The capital investment committee of Overnight Express Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows:

$\backslash$table$[[,\backslash$table$[[$Distribution Center$],[$Expansion$],[$Income from$],[$Operations$]],\backslash$table$[[$Distribution Center$],[$Expansion$]],\backslash$table$[[$Internet Tracking$],[$Technology$]],\backslash$table$[[$Internet Tracking$],[$Technology$]]],[$Year$,$Net,$\backslash$table$[[$Income from$],[$Net$]],$Cash Flows,$],[1,$$$27,300,$$$82,000,$$$57,000,$$$131,000$