I NEED HELP WITH THE FOLLOWING ACG2071 ACCOUNTING HOMEWORK QUESTION PLEASE:

Average Rate of Return Method, Net Present Value Method, and Analysis

The capital investment committee of Cross Continent Trucking Inc. is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows:

	Warehouse					Tracking Technology
Year	Income from Operations		Net Cash Flow			Income from Operations		Net Cash Flow
1	$28,800		$92,000			$60,000		$147,000
2	28,800		92,000			46,000		124,000
3	28,800		92,000			23,000		87,000
4	28,800		92,000			10,000		60,000
5	28,800		92,000			5,000		42,000
Total	$144,000		$460,000			$144,000		$460,000

Each project requires an investment of $480,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes of the net present value analysis.

Present Value of $1 at Compound Interest
Year	6%	10%	12%	15%	20%
1	0.943	0.909	0.893	0.870	0.833
2	0.890	0.826	0.797	0.756	0.694
3	0.840	0.751	0.712	0.658	0.579
4	0.792	0.683	0.636	0.572	0.482
5	0.747	0.621	0.567	0.497	0.402
6	0.705	0.564	0.507	0.432	0.335
7	0.665	0.513	0.452	0.376	0.279
8	0.627	0.467	0.404	0.327	0.233
9	0.592	0.424	0.361	0.284	0.194
10	0.558	0.386	0.322	0.247	0.162

Required:

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

	Average Rate of Return
Warehouse	%_____
Tracking Technology	%_____

1b. 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.

	Warehouse	Tracking Technology
Present value of net cash flow total	$ ____	$ ____
Less amount to be invested	$ ____	$ ____
Net present value	$ ____	$ ____

Feedback:

1a. Divide the estimated average annual income by the average investment.

1b. For each investment, multiply the present value factor for each year (Exhibit 1) by that year's net cash flow. Subtract the amount to be invested from the total present value of the net cash flow. Which investment offers the more favorable net present value?

2. Consider when cash flows are received and the time value of money.