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Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Average Rate of Return Front-End
Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Average Rate of Return Front-End Loader % Greenhouse % 1b. 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 sign to indicate a negative net present value. Front-End Loader Greenhouse Present value of net cash flow Amount to be invested Net present value $ $ 2. Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments. in time compared to The front-end loader has a net present value because cash flows occur the greenhouse. Thus, if only one of the two projects can be accepted, the would be the more attractive
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