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need help with 1b pls Average rate of retum method, net present value method, and analysis for a service company The captal investment committee of
need help with 1b pls
Average rate of retum method, net present value method, and analysis for a service company The captal investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash fows from each investment are as follows Each project requires an investment of $560,000. 5tralght-line depreciation will be used, and no residual value is expected. The committee has seiected a rate of 12% for purposes of the net present value analysis. Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. 16. Compute the net present value for each investment, Use the present value of $1 table above. If required, round to the nearest dollar. If required, use the minus sion to indicate a negative net present value Step by Step Solution
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