CJN Corporation is evaluating a project requiring a capital expenditure of $725,650. The project has an estimated life of four years with no residual value at the end of the four years. The estimated net income and net cash flow from the project are as follows: Year 1234 Net Income $ 75,000 102,000 109,500 36,000 $322,500 Net Cash Flow $285,000 290,000 190,000 125,000 $890,000 The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is: .893, .797, .712, and .636, respectively. Round all answers to two decimal places. Determine: (a) the average rate of return on investment, and (b) the net present value. (a) (b)