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Average Rate of Return Method, Net Present Value Method, and Analysis for a service company The capital investment committee of Arches Landscaping Company is considering

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Average Rate of Return Method, Net Present Value 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 cash flows from each Investment are as follows: Front-End Loader Greenhouse Operating Income $34,200 Net Cash Flow Net Cash Flow Year Operating Income $72,000 55,000 1 2 34,200 34,200 34,200 3 $105,000 105,000 105,000 105,000 105,000 $525,000 $168,000 142.000 100,000 58,000 4 27,000 12,000 5,000 5 34,200 $171,000 47,000 $525.000 Total $121,000 Each project requires an investment of $360,000. Straight line depreciation will be used and real espected. The committee corte purposes of the present value Present Value of $1 at Compound Interest Year 899 10% 12% 15W 20% 1 0.943 0.900 0.93 0270 0.813 2 0.000 9.026 0.79 07 0.654 3 0. 033 0.712 0.650 0.5 4 0.792 9.50 0.636 0.572 04 5 0.747 0.21 6.567 04497 0402 5 0.705 0.564 3.502 02336 0.66% 0.13 0.451 017 0229 COVOR Show Me How Calculator 3 0.751 0.712 0.658 0.579 0.840 0.792 4 0.583 0.636 0.572 0.482 5 0.742 0.621 0.567 0.497 0.402 6 0.705 0.507 0.432 0.335 0.564 0.513 7 0.665 0.452 0.376 0.279 6 0.467 0.233 0.627 0.992 0.322 0.284 9 0404 0.361 0322 9.424 0.194 10 0.555 0.386 0.247 0.162 Required: 10. Compute the average rate of return for each investment. If required, round your answer to one decimal place Average Rate of Retum Front-End Loader Greenhouse 16. Com the form the fire round to the nearest dan wees to ndicate avere Front-End Loader Greenhouse Wat volue of the ALCO LALOO LALGO Auto be in ut value 2. Penonton viverra Theader CO of the canne Thesion

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