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Each project requires an investment of 5600,000 . Straight-ine depreciation wil be used, and no residual valoe is expected. The committee has selected a rate

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Each project requires an investment of 5600,000 . Straight-ine depreciation wil be used, and no residual valoe is expected. The committee has selected a rate of 12% purposes of the net present value analysis: Required: 1a. Compute the aversge rate of return for each investment. 1a. Compute the average rate of return for each investment: 1b. Compute the net present volue for each imestment. Use the present value of \$1 table above. If required, use the minus sign to indicate a negatike net present volut If required, round to the nearest dollar. 2. The warehouse has a. projects can be acceoted, the net present value as trocking technolsgy cash fows occur woild be the more aviractive. in ticne mas, at on ly one of the two Averoge Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Ellis Transport and Storage inc. is considering two investment projects. The estimated incoche from operations and net cash flows from each investment are as follows: purposes of the net present value ahalysis

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