Average rate of return method, net present value method, and analysis for a service company The capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net ca Robotic Assembler Robotic Assembler Year Operating Income Net Cash Flow Warehouse Operating Income Warehouse Net Cash Flow 1 $35,000 $65,000 $21,000 $51,000 2 25,000 55,000 21,000 51,000 3 20,000 50,000 21,000 51,000 4 15,000 45,000 21,000 51,000 5 10,000 40,000 21,000 51,000 Total $105,000 $255,000 $105,000 $255,000 Each project requires an investment of $150,000. Straight-line depreciation will be used, and no residual value is expected. The comm the net present value analysis. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 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 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 eBook Show Me How Print Item 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 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 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. Robotic Assembler Average Rate of Return % Warehouse 1 % 1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, round to the nearest dollar. Robotic Assembler Present value of net cash flow Warehouse 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 robotic assembler has a the two projects can be accepted, the net present value because would be the more attractive. cash flows occur earlier in time compared to the warehous required, round your answer to one decimal place. The present value of $1 table above. If required, round to the nearest dollar. Warehouse , advising it on the relative merits of the two investments. nt value because cash flows occur earlier in time compared to the warehouse. Thus, if only one of would be the more attractive. present value method, and analysis for a service company Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: botic Assembler Warehouse Operating Warehouse Net Cash Flow Income Net Cash Flow $65,000 $21,000 $51,000 55,000 21,000 51,000 50,000 21,000 51,000 45,000 21,000 51,000 40,000 21,000 51,000 $255,000 $105,000 $255,000 $150,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes of pound Interest 15% 20% 3 0.870 0.833 7 0.756 0.694 P 0.658 0.579 0.572 0.482 0.497 0.402 0.432 0.335 Next