Average rate of return method, net present value method, and analysis for a service company The capital investment committee of Elis Transport and Stornge Inc. is considering two investment projects. The estimated operating income and net cash flows from each investment are as follows: Each project requires an investment of $368,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selocted a rate of 15% for purposes of the net prestent value analysts: 1a. Compute the averoge rate of return for each investment. If required, round your answers to one decimal place. 16. Compute the net present value for each investment, Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value If required, round to the nearest dollar. 2. The net present value exceeds the selected rate established for discounced cash flows (15s), while the does not. Thus. considering only quantitat ve factors, the investment should be selected