"Average rate of Return Method, Net Prentvo Method, and Analysis for a service company The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated operating income and net cast tows from each investment are as follows: Front-End Loader Greenhouse Operating Net Cash Operating Year Income Flow Income Net Cash Flow 1 $60,000 2 3 $193,000 193,000 193,000 193,000 493,000 3965,000 $126,000 96,000 43,000 21,000 50,000 60,000 60,000 60,000 3300,000 5309,000 261,000 183,000 125.000 07.000 5965,000 4 5 9,000 $300,000 Total Each project requires an investment of 5000,000. Stratte depreciation will be used and is expected. The committee has the of 1 for purposes of the reply Year 1 Present Value of si at Compound Interest 6% 10% 129 159 2018 0.943 0.009 0.0193 0670 003 0.890 0.826 0.797 0.694 0.840 0751 0.712 250 10:57 2 > audia Mercado - YouTube + assignment/takeAssignment Main doinvoker=&takeAssignmentSessionLocator -&inprogress-false Print Item Present Value of $1 at Compound Interest 6% 10% 12% 20% Year 15% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.56% 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0,513 0.452 0.376 0.279 0.233 8 0.467 0.404 0.327 9 0.627 0.592 0,558 0.424 0.361 0.284 0.194 10 0.386 0.322 0.247 0.162 Required: 1a. Compute the average rate or return for each investment If required, round your answer to one decimal place, Average Rate of Return Front-End Loader Greenhouse 1b. Compute the tet present Valoo for at investment. Use the present a table to IT required, round to the nearest dollar que use the minus sign to indicate a negative not present value Front-End Londer Greenhouse Print item 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place, Average Rate of Return Front-End Loader Greenhouse 90 1b. Compute the net present value for each Investment. Use the present value of $1 table above If required, round to the nearest dollar. If required use the minus sign to indicate negative net present values Front-End Loader Greenhouse Present value of net cash flow Amount to be invested Net present value 2. Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments The front and loader has a met present you because cash cows occur me compared to the ground Thus, only one of the two projects can be accepted the would be the more attract