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Distribution Center Distribution Center Internet Tracking Internet Tracking Expansion Income from Expansion Net Technology Income from Operations Net Cash Flows Technology Year Operations Cash

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Distribution Center Distribution Center Internet Tracking Internet Tracking Expansion Income from Expansion Net Technology Income from Operations Net Cash Flows Technology Year Operations Cash Flows 1 $ 66,000 $ 226,000 $50,000 $ 150,000 2 66,000 226,000 50,000 150,000 3 66,000 226,000 50,000 150,000 4 66,000 226,000 50,000 150,000 5 66,000 226,000 50,000 150,000 Total $330,000 $1,130,000 $250,000 $750,000 The Distribution Center Expansion requires an investment of $800,000 while the Internet Tracking Technology requires an investment of $500,000. Straight-line depreciation will be used, and no residual value is expected for either project. Required: 1. Compute the average rate of return for each investment. Round to one decimal place. Distribution Center Expansion Internet Tracking Technology Average Rate of Return X 96 X%

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