Average rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows: Warehouse Tracking Technology Year Income from Operations Net Cash Flow Income from Operations Net Cash Flow $65,100 65,100 65,100 65,100 65,100 $203,000 203,000 203,000 203,000 203,000 $137,000 104,000 52,000 23,000 9,500 $325,000 274,000 193,000 132,000 91,000 $1,015,000 Total $325,500 $1,015,000 $325,500 Each project requires an investment of $620,000. 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% 0.943 0.909 0.893 0.870 0.833 0.526 0.797 0.756 0.694 0.890 0.840 0.751 0.712 0.658 0.579 Assignment/takeAssignment Main.doinvoker assignmentsstakeAssignmentSession Locator assignment-takeinprogress=false 0.792 0.747 0.705 0.665 0.627 0.683 0.621 0.564 0.513 0.467 0.636 0.567 0.507 0.452 0.404 0.572 0.497 0.432 0.482 0.402 0.335 0.375 0.279 0.327 0.233 9 0 0 .592 .558 0.424 0.386 0.361 0.322 0.284 0.247 0.194 0.162 10 Required: la. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Average Rate of Return Warehouse Tracking Technology ib. Compute the net present value for each investment. Use the present value of stable above. If required, use the minus sign to indicate a negative net present value Warehouse Tracking Technology Present value of net cash flow total Less amount to be invested Not present value comintakeissignmental MBOVU 7 0 .665 8 0.627 9 0 .592 10 0.558 Required: 0.513 0.467 0.424 0.386 0.452 0.404 0.361 0.322 0.376 0.322 0.284 0.247 0.279 0.233 0.194 0.162 la. Compute the average rate of return for each investment. If required, round your answer to one decimal place Average Rate of Return Warehouse Tracking Technology 1b. Compute the net present value for each investment. Use the present value of stable above. If required, use the minus sign to indicate a negative net present value Warehouse Tracing Technology Present Value of net cash flow total Less amount to be invented Net present value 7 In time Thusonly one of the 2. The warehouse has a two projects can be accepted, the not present value as tracking technology cash nows ocour would be the more attractive, Won 2 more Check My Workerumang Previous