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need help with the traking technology Cash Average rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Ellis Transport
need help with the traking technology
Cash Average 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 income from operations and net cash flows from each investment are as follows: Warehouse Tracking Technology Net Net Income from Cash Income from Year Operations Flow Operations Flow 1 $ 61,400 $135,000 $ 34,400 $100,000 2 51,400 125.000 34,400 108,000 36,400 -110,000 34,400 108,000 4 26,400 100,000 34,400 108,000 5 (3,600) 70,000 34,400 108,000 Total $172,000 $540,000 $172,000 $540,000 Each project requres an investment of $368,000. Stratis depreciation will be used, and no residual value is expected. The committee has selected a rate of 15 for purposes of the represent value analys Present Value of $1 at Compound Interest Year 69 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.792 0.750 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 0.242 0.621 0.567 0.497 0.402 0.705 0,561 0.507 0.432 0335 2 0.665 0.513 0.452 0.376 0.279 Oude My Work or Check My Worsemang Show Me How 0.694 0.579 0.482 Module 14 CH 26 (NOT GRADLD) (Cabook U U. UU 2 0.890 0.826 0.797 0.756 3 0.840 0.751 0.712 0.658 0.792 0.683 0.63 0.522 5 0.747 0.621 0.567 0.497 6 0.705 0.564 0.507 0432 2 0.665 0.513 0.452 0.370 0.62 0.462 0.404 0.32 9 0.592 0.424 0.361 0:24 10 0.550 3.380 0.322 0.247 0.402 0.335 0.279 0.233 0.794 0.162 Required: la. 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 rat present value for each investment. Use the present value of s1 table above. It recured, use the minus sign to indicate a negative net present value. If required, round to the nearest solta Warehouse Tracking Technology retet value of net cash now total Less amount to be invested Net present value X X 2. The de vot. Thus cering nyaritative actors, the Het prezentaceeds the selected at tablished for discounted cash (15%), while the investment should be celicted Step by Step Solution
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