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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

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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: \begin{tabular}{ccccc} & RoboticAssemblerYear & RoboticAssemblerNetCashFlow & WarehouseOperatingIncome & WarehouseNetCashFlow \\ \hline 1 & $40,000 & $123,000 & $84,000 & $197,000 \\ 2 & 40,000 & 123,000 & 64,000 & 166,000 \\ 3 & 40,000 & 123,000 & 32,000 & 117,000 \\ 4 & 40,000 & 123,000 & 14,000 & 80,000 \\ 5 & 40,000 & 123,000 & 6,000 & 55,000 \\ \cline { 2 - 5 } Total & $200,000 & $615,000 & $200,000 & $615,000 \\ \cline { 2 - 5 } & & & \end{tabular} Present Value of $1 at Compound Interest \begin{tabular}{cccccc} \hline Year & 6% & 10% & 12% & 15% & 20% \\ \hline 1 & 0.943 & 0.909 & 0.893 & 0.870 & 0.833 \\ 2 & 0.890 & 0.826 & 0.797 & 0.756 & 0.694 \\ 3 & 0.840 & 0.751 & 0.712 & 0.658 & 0.579 \\ 4 & 0.792 & 0.683 & 0.636 & 0.572 & 0.482 \\ 5 & 0.747 & 0.621 & 0.567 & 0.497 & 0.402 \\ 6 & 0.705 & 0.564 & 0.507 & 0.432 & 0.335 \\ 7 & 0.665 & 0.513 & 0.452 & 0.376 & 0.279 \\ 8 & 0.627 & 0.467 & 0.404 & 0.327 & 0.233 \\ 9 & 0.592 & 0.424 & 0.361 & 0.284 & 0.194 \\ 10 & 0.558 & 0.386 & 0.322 & 0.247 & 0.162 \end{tabular} 2. Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments. would be the more attractive

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