The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows:

Warehouse Tracking Technology

Year Income from

Operations Net Cash

Flow Income from

Operations Net Cash

Flow

$1$ $$48,300$ $$155,000$ $$101,000$ $$248,000$

$248,300155,00077,000209,000$

$348,300155,00039,000147,000$

$448,300155,00017,000101,000$

$548,300155,0007,50070,000$

Total $$241,500$ $$775,000$ $$241,500$ $$775,0001$a$.$ Compute the average rate of return for each investment. If required, round your answer to one decimal place.

Average Rate of Return

Warehouse fill in the blank $1$

$11$

$\%$

Tracking Technology fill in the blank $2$

$53$

$\%$

$1$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.

Warehouse Tracking Technology

Present value of net cash flow total $fill in the blank $3$

$fill in the blank $4$

Less amount to be invested $fill in the blank $5$

$fill in the blank $6$

Net present value $fill in the blank $7$

$fill in the blank $8$

$2.$ The warehouse has a

net present value as tracking technology cash flows occur

in time. Thus, if only one of the two projects can be accepted, the

would be the more attractive.