The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Front-End Loader Greenhouse Operating Net Cash Operating Net Cash Year Income Flow Income Flow 1 $44,200 $144,000 $93,000 $230,000 2 44,200 144,000 71,000 194,000 3 44,200 144,000 35,000 137,000 4 44,200 144,000 15,000 94,000 5 Total 44,200 $221,000 144,000 $720,000 7,000 65,000 $221,000 $720,000 Each project requires an investment of $520,000, Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943) 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0,712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402