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 t are as follows: Tracking Technology Income from Net Cash Net cash Operations Flow Operations Flow 61,400 $135,000 34,400 $108,000 51A00 125.000 34,400 108.000 36,400 110.000 34,400 108.000 100,000 26,400 34,400 108.000 70,000 34,400 108.000 $172,000 $540,000 $172,000 $540,000 Each project requires an investmen 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 6% 10% 12% 20% 1 0.943 0,909 0.893 0,870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0,751 0,712 0,658 0.579 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0,497 0.402 6 0.70s 0.564 0.507 0.432 0.335 0.665 0,513 0.452 0.376 0.279 0.627 0.467 0.327 0.233