The capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows:

Present Value of $$1$ at Compound

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

Robotic Assembler

Warehouse

$\%$

Robotic Assembler Warehouse

Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments.