Vanessa Company is evaluating a project requiring a capital expenditure of $480,000. The project has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the project are as follows: Net Income Net Cash Flow $90,000 $210,000 80,000 200,000 40,000 160,000 30,000 150,000 $240,000 $720,000 Year 1 2 3 4 The company's minimum desired rate of return for net present value analysis is 15%. The factors for the present value of $1 at compound interest of 15% for 1, 2, 3, ar 4 years are 0.870, 0.756, 0.658, and 0.572, respectively. Determine (a) the average rate of return on investment and (b) the net present value for the project. a. Average rate of return on investment b. Net present value $ %

Vanessa Company is evaluating a project requiring a capital expenditure of $480,000. The project has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the project are as follows: The company's minimum desired rate of return for net present value analysis is 15%. The factors for the present value of $1 at conpound interest of 15% for 1,2,3, a 4 years are 0.870,0.756,0.658, and 0.572, respectively. Determine (a) the average rate of retum on investment and (b) the net present value for the project. a. Average rate of return on investment b. Net present value