The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows:

Present Value of $$1$ at Compound

Interest

Required:

$1$a$.$ Compute the average rate of return for each investment. If required, round your answer to one decimal place.

Average Rate of

Return

$1$b$.$ Compute the net present value for each investment. Use the present value of $$1$ table above. If required, use the minus sign to indicate a negative net present value.

Front$-$End Loader Greenhouse

Amount to be invested

Net present value

$\frac{\text{\$}}{b}ar(78,360),\frac{\text{\$}}{b}ar(122,27)$