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} Year & \begin{tabular}{c} Robotic Assembler \\ Operating Income \end{tabular} & \begin{tabular}{c} Robotic Assembler \\ Net Cash Flow \end{tabular} & \begin{tabular}{c} Warehouse \\ Operating \\ Income \end{tabular} & \begin{tabular}{c} Warehouse \\ Net Cash Flow \end{tabular} \\ \hline 1 & $46,000 & $148,000 & $97,000 & $237,000 \\ 2 & 46,000 & 148,000 & 74,000 & 200,000 \\ 3 & 46,000 & 148,000 & 37,000 & 141,000 \\ 4 & 46,000 & 148,000 & 16,000 & 96,000 \\ 5 & 46,000 & 148,000 & 6,000 & 66,000 \\ \cline { 2 - 5 } Total & $230,000 & $740,000 & $230,000 & $740,000 \\ \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} 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Average Rate of Return \begin{tabular}{ll} \hline Robotic Assembler & % \\ Warehouse & % \end{tabular} \begin{tabular}{lcc} & Robotic Assembler & Warehouse \\ \hline Present value of net cash flow & $ & $ \\ Amount to be invested & & $ \\ Net present value & $ \end{tabular} 2. Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments. The robotic assembler has a net present value because cash flows occur in time compared to the warehouse. Thus, if only one of the two projects can be accepted, the would be the more attractive