The capital investment committee of Overnight Express Inc. is considering two investment projects. The estimated income from operations and net cash flows from each

investment are as follows:

The Distribution Center Expansion requires an investment of $$360,000$ while the Internet Tracking Technology requires an investment of $$401,000.$ Straight$-$line depreciation

will be used, and no residual value is expected for either project.

Required:

Compute the average rate of return for each investment. Round to one decimal place.

Average Rate of Return

Distribution Center Expansion

X$\%$

Internet Tracking Technology

$\%$