The capital investment committee of Overnight Express Inc. is considering twe investment projects. The estimated income from operations and net cash flow from each investment are as follows: Distribution Center Expansion Internet Tracking Technology Income from Net Income from Net Year Operations Cash Flow Operations Cash Flow 1 $33,600 $104,000 571,000 $166,000 2 33,600 104,000 54,000 140,000 3 33,600 104,000 27,000 99,000 4 33,600 104,000 12,000 68,000 5 33,600 104,000 4,000 47,000 Total $168,000 $520,000 $168,000 $520,000 Present Value of $1 at Compound Interest Year 10% 12% 159 20% 1 0.909 0.893 0.870 0.833 2 0.990 0.826 0.792 0.756 0.694 3 0.840 0.251 0.712 0.658 0.529 4 0.792 0.683 0.572 5 0.242 0.621 0.562 0.497 0.402 6 0.705 0.560 0.502 0.335 2 0.665 0.513 0.452 0.376 0.279 B 0.622 0.462 0.327 0.233 0.404 0.361 9 0.592 0.424 0.284 0.194 10 0.558 0.386 0.322 0.162 Each project requires an investment of $420,000. 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. Required: ia. Compute the average rate of return for each investment. Round to one decimal place. Average rate of Return Distribution Center Expansion Internet Tracking Technology 1b. Compute the nat 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. Distribution Center Expansion Internet Tracking Technology Total present value of net cash flow Amount to be invested Net present value