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 income from operations and net cash flows from each investment are as follows Front-End Loader Greenhouse Income from Net Cashh Income from Net Cash Year Operations Flow Flow Operations $347,000 $66,000 217,000 $139,000 66,000 217,000 106,000 293,000 66,000 217,000 53,000 206,000 66,000 217,000 23,000 141,000 9,000 98,000 66,000 217,000 $330,000 $1,085,000 330,000 $1,085,000 Total h project requires an investment of $600,000. 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 analy Present Value of $1 at Compound Interest 15% Year 6% 10% 12% 20% 0.9430.909 0.893 0.8700.833 0.8900.826 0.7970.756 0.694 0.579 0.840 0.751 0.712 0.658 0.7920.683 0.636 0.572 0.482 0.7470.621 0.567 0.497 0.402 0.7050.564 0.507 0.432 0.335 0.513 0.665 0.452 0.376 0.279 0.627 0.467 .404 0.3270.233 0.194 0.592 0.424 0.361 0.284 10 0.558 0.386 0.322 0.247 0.162 Required: Present Value ol $1 at Compound Interest Year 6% 10% 296 596 20% 0.9430.90 0.993 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 .658 0.579 0.683 0.792 0.636 0.572 0.482 0.7470.621 0.57 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.294 0.194 10 0.558 0.396 0.322 0.247 0.162 Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Average Rate of Return Front-End Loader Greenhouse lb. Compute the net present value for each investment. Use the present value of 1 table above. If required, use the minus sign to indicate a negative net present value. Front-End Loader Present value of net cash flow Amount to be invested Net present value 2. Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments The frant-end loader has a net present value because cash flows occur in time compared to the greenhouse. Thus, if only one of the two projects can be accepted, the would be the more attractive