Average rate of return method, net present value method, and analysis for a service company The capital investment committee of louana inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Each project requires an investment of 5600,000 . Straight-line depreciation will be used, and no residual value is exected. The committee has seincted a rate of 15% for purposes of the net present value analysis. Each project requires an investment of $600,000. Stralght-line depreciation will be uned; and no residual value is expected. The committee has selected a rate of 15% for purposes of the net present value analysis. 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. 16. Compute the net present yalue for each investment. Use the present value of si tacle above. If reguired, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. 2. Prepare a brief report for the capital investment committee, advising it on the rejatove merits af the two investments. The robotic assembler has a net present valige becituse cach flowd occur only one of the two prolects can be accepted, the would be the more attractive