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: Each project requires an investment of $380,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes of the net present value analysis. Present Value of $1 at Compound Interest Required: 1a. Compute the average rate of return for each investment. Each project requires an investment of $285,000. A rate of 12% has been selected for the net present value analysis. Required: 1a. Compute the cash payback period for each product. 1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar. 2. Because of the timing of the receipt of the net cash flows, the offers a higher Present Value of an Annuity of $1 at Compound Interest Required: negative net present value. If required, round to the nearest whole dollar. \begin{tabular}{ll} & Wind Turbines \\ \hline Present value of annual net cash flows \\ Less amount to be invested \\ Net present value \end{tabular} 1b. Compute a present value index for each project. If required, round your answers to two decimal places. Present Value Index Wind Turbines Biofuel Equipment Wind Turbines Biofuel Equipment Present value factor for an annuity of $1 Internal rate of return % % 3. The net present value, present value index, and internal rate of return all indicate that the is a better financial opportunity compared to the 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