Average rate of return method, net present value method, and analysis for a service company The capital investment committee of Elle Transport and Storage Inc. is considering two investment projects. The estimated operating income and net cash flows from each investment are as folows Tracking Technology Warehouse Year Operating Income Warehouse Net Cash Flow Operating Tracking Technology Income Net Cash Flow 1 $61,400 $135,000 $34,400 $108,000 2 51,400 125,000 34,400 108,000 3. 36,400 110,000 34,400 108,000 4 26,400 100,000 34,400 100,000 Total (3,600) $172,000 70,000 $540,000 34,400 $172,000 108,000 $540,000 Each project requires an investment of $368,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 15% for purposes of 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 2 0.890 0.826 0.797 0.756 3 0.840 0.751 0.712 0.833 0.694 0.658 0.579 4 0.792 0.683 S 0.747 0.621 6 0.705 0.564 0.567 0.507 0.036 0.572 0.482 0.497 0.402 0,432 0.335 7 0.665 0.513 0.452 0.376 0.279 B 0.627 0.467 0.404 0.327 0.233 9 0.592 10 0.558 0.386 0.424 0.361 0.322 0.284 0.194 0.247 0.162 Required: 1a. Compute the average rate of return for each investment. If required, round your answers to one decimal place. Average Rate of Return Warehouse