/m/takeAssignment/takeAssignmentMain.dolinvoker &takeAssignmentSessionLocator &inprogress-false ebook Show Me How Average rate of return methed, net present value method, and analysis for a service company The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated operating income and net cash flows from each investment are as follows: Warehouse Warehouse Year Operating Income Net Cash Flow Tracking Technology Tracking Technology Operating Income Net Cash Flow 3 $61,400 $135,000 $34,400 $108,000 2 $1,400 125,000 34,400 108,000 3 36,400 110,000 34,400 108,000 4 26,400 100,000 34,400 108,000 5 Total (3,600) $172,000 70,000 34,400 108,000 $540,000 $172,000 $540,000 Each project requires an investment of $368,000. 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 Year 5% 10% 12% 15% 20% 0.943 0.909 0.193 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 0.021 0.567 0.497 0.402 " 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 B 0,627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.306 0.322 0.247 0.162 Required: 1a. Compute the average rate of return for each investment. If required, round your answers to one decimal place. Average Rate of Return Check My Works Check My Work uses remaining Search a 6 " 0 O NE Email Instruct Save and Sub Afr Book Shoe Me How Average rate of return method, net present value method, and analysis for a service company The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated operating income and net cash flows from each investment are as follows: Warehouse Year Operating Income Tracking Technology Operating Tracking Technology Warehouse Net Cash Flow Income Net Cash Flow 1 $61,400 $135,000 $34,400 $100,000 2 51,400 125,000 34,400 108,000 3 36,400 110,000 34,400 108,000 4 26,400 100,000 34,400 108,000 5 (3,000) 70,000 Total $172,000 $540,000 34,400 $172,000 108,000 $540,000 Each project requires an investment of $368,000. 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 Year 6% 10% 12% 1596 20% 1 0.043 0.009 0.093 0.870 0.833 2 6.890 0.826 0.797 0.750 0.604 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.036 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 0.065 0.513 0.452 0.376 0.627 0.279 0.467 0.404 0.327 0.233 9 0.592 0.424 10 0.558 0.386 0.361 0.322 0.284 0.104 0.247 0.102 Required 1a. Compute the average rate of return for each investment. If required, round your answers to one decimal place. Average Rate of Return Present Val of $1 at Compound Interest Year 69 10% 12% 15% 20% 1 0.943 0.909 0.893 0.670 0,833 2 08901 0.826 0.297 0.756 0.094 . 0.840 0.751 0.712 0.550 0.379 4 0.392 0.683 0.636 0572 0.482 6.47 0.621 8.367 0.497 0402 6 0.705 0.564 0.507 0,432 0.335 0.665 9.313 9.452 0.370 0.279 0622 0.467 0404 6.327 0.233 9 6.592 0.424 0.365 0.284 0.194 10 0.558 0,306 0.322 0.247 0.162 Required 34. Compute the average rate of return for each investment. If required, round your answers to one decimal place Warehouse Average Rate of Return Tracking Technology th. Compute the net present value for each investment, the the present value of $1 table above. If required, use the mus sign to indicate a negative net present value. If required, round in the nearest dollar. Warehouse Tracking Technology Tip value of not cash flow Amed to be invested 2. The nt present value exceeds the selected rate established for counted cachowe (15%), while the does not thus considering only stative facts, the Investment thauk besteed