salvage value. The estimated net Sommers Company is evaluating a project requiring income and net cash flow from the project are as follows Year Net Income Net Cash low a capital expenditure of $300,000. The project has an estimated life of 5 years and no $60,000 $120,000 110,000 105,000 90,000 80,000 $205,000 505,000 50,000 45,000 30,000 20,000 The company's minimum desired rate of return for net present value analysis is 12%. The present value of $1 at compound interest of 12% is shown in the table below: of $1 at 12% 1 0.893 0.797 30.712 4 0.636 5 0.567 a. Determine the average rate of return on investment, giving effect to depreciation on the investment. Round your answer to two decimal places b. Determine the net present value