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Average Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Elles Transport and Storage Inc. is considering two investment

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Average Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Elles Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from e investment are as follows: Each projec requires an inveitment of $620,000. Strighteline depreciation will be used, and no recidual value is expected. The committee has selected a rate of io for purpore of the net present value analysid. 1a. Campute the averago rate of ietum for each investinent. 1b. Compute the net present value for each investment. Use the present value of s1 table above. If required, use the minus sign to indicate a fegative net preseot value If required, round to the nearest dollar. 2. The warehoure has a net present value as uadeng technology cash fows incur. an tome. Thus, if anyy oon of the lae arosects ca be accepted, the would be the morr atractive

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