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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
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:
Distribution Center Expansion Income from Operations:
$$$$$ Total:$
Distribution Center Expansion Net Cash Flows:
$ $ $$ Total $
Technology Income from Operations:
$$ $ Total: $
Technology Net Cash Flows:
$$$$$ Total $
The Distribution Center Expansion requires an investment of $ while the Internet Tracking Technology requires an investment of $ Straightline 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.
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