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Please, assist with 1a. and 1.b Thank You, Average rate of return method, het present value method, and analysis for a service company The capital

Please, assist with 1a. and 1.b image text in transcribed
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Average rate of return method, het present value method, and analysis for a service company The capital investment committee of Iguana Inc is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Each project requires an investment of $150,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rat 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. 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. 1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, round to the nearest dollar. 2. Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments. The robotic assembler has a net present value because warehouse. Thus, if only one of the two projects can be accepted, the would be the more attractive. Feedback T Check My Work 1a. Divide the estimated average annual incomo by the average imvestment. 16. For each investment. multipy the present value tactor for each year (Refer to Extibit 2 in the texi) by that year's net cash flow: Subtract the amount to be invested from the total present value of the net cash flow. Which imvestment offers the more favorable net present value? 2. Consider when cash flows are received and the time value of money

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