The capital investment committee of Touch of Eden Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows:

	Front-End Loader					Greenhouse Fixtures
Year	Income from Operations		Net Cash Flow			Income from Operations		Net Cash Flow
1	$23,000		$ 35,000			$10,200		$ 22,200
2	20,000		32,000			10,200		22,200
3	12,000		24,000			10,200		22,200
4	(2,000)		10,000			10,200		22,200
5	(2,000)		10,000			10,200		22,200
	$51,000		$111,000			$51,000		$111,000

Each project requires an investment of $60,000. 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.

Present Value of $1 at Compound Interest
Year	6%	10%	12%	15%	20%
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

Required:

1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. %

	Average Rate of Return
Greenhouse	%
Front End Loader	%

1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, round to the nearest dollar.

	Front End Loader	Greenhouse
Present value of net cash flow total	$	$
Less amount to be invested	$	$
Net present value	$	$