PR 26-1A and analysis for a service company The capital investment committee of Touch of Eden Landscaping Comp two capital investments. The estimated income from operations an each investment are as follows: Average rate of return method, net present value method. OBJ. 2, 3 net cash flows from Front-End Loader-h Greenhouse Fixtures Incomefrom- ncome from Net Cash from Operations Netow Year Operations $23,000 Flow Flow 35,000 $10,200 22.200 20,000 12,000 (2,000) (2,000) S51,000 $111,000 10,20022,200 22,200 10,200 22,2 32,000 24,000 10,000 10,000 4 10,200 10,200 $51,000 22,200 $111,000 Each project requires an investment of $60,000, 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. Instructions 1. Compute the following: place. a. The average rate of return for each investment. Round to one decimal b. The net present value for each investment. Use the present value of $1 table appearing in this chapter (Exhibit 2). Round present values to the nearest dollar. 2Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments