The capital investment committee of Arches Landscaping Company is considering to cart investments. The estimated operating income and not cachows from each investment areas low Front-End Leader Greenhouse Operating Income Net Cash Flow Operating Income Year $41,800 $210.000 177,000 41,800 $131,000 131,000 131,000 131,000 131,000 $88,000 67,000 33,000 15,000 41,500 124,000 85,000 59.000 41.00 6.000 $209,000 $655.000 $209,000 155.000 Each project requires an investment of $40,000. Stre tine depreciation will be used, and expected. The committee has selected a role of 12 for purposes of the netres Present Value of $1 at Compound Interest Year 65 104 12 15 2016 0. 0.09 0.19 0.870 0.833 0.797 0.756 0.694 0.751 0.658 0.872 0.840 0.792 0.747 0.70 0.497 0.402 0.335 0.621 0.564 0.513 0.667 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0432 0.376 0.279 0.233 0637 0.592 .5 0.424 254 0247 0.194 0.162 10 0 Required: la. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Average Rate of Return Front-End Leader Greenhouse Ib. Compute the present value for each v Uue the pret value of $1 bove required, round to the nearest darrer e the minste indicate a negative net presenta Front-End Lander Greenhouse Present value of net cash flow Amount to be invece 440,000 440.000 Net present value 2. Prepare a brief report for the capital investment Committee, advising it on the relativements of the two investments net pr a ebe os t a m e compared to the greenhouse. Thus, only one of the two projects can be accepted the greenhouse The front-end leader has a smaller be the more attractive