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 cash flows from each investment are as follows: Warehouse Operating Income Year 1 2 3 4 5 Total Year 1 2 3 Each project requires an investment of $440,000. Straight-line depreciation present value analysis. 4 5 6 7 Robotic Assembler Operating Income 8 $46,200 46,200 46,200 46,200 46,200 $231,000 9 10 Required: Present Value of $1 at Compound Interest 10% 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.909 0.826 0.751 0.683 0.621 Robotic Assembler Net Cash Flow 0.564 0.513 $151,000 151,000 151,000 151,000 151,000 $755,000 0.467 0.424 0.386 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 15% 0.870 0.756 0.658 0.572 $97,000 74,000 37,000 16,000 7,000 $231,000 0.497 0.432 0.376 0.327 0.284 0.247 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 Warehouse Net Cash Flow $242,000 204,000 143,000 98,000 68,000 $755,000 used, and no residual value is

jesent volue anatyak. 1a. Compute the awerage rate of return for each investment. If required, round your answer to one decimal place