Average Rate of Return Method, Net Present Value Method, and Analysis for a service cornpany The capital investment committee of Arches Landscaping Company is considering two capital ifvestments. The estimared operating income ard net cash foiss from each ivestment are as follows: Each project requires an investment of $420,000. Straighe-line deprecation wil be used, and no residual value is expected. The committee has selected a rate of tow, 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 value for each investment. Use the present value of $1 table above. If required, 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, odvising it on the relative merits of the two investments. The front-end loader has a net present value because cash flows occur of the two projects can be acceoted, the would be the more attractive. in time compared to the greenhouse. Thus, it only one