Each project requires an investment of $$560,000.$ 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

Required:

$1$a$.$ Compute the average rate of return for each investment. If required, round your answer to one decimal place.

Average Rate of Return

$1$b$.$ 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.