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 cash flow from the project are as follows.

year net income Net cash flow

1 90,000 210,000

2 80,000 200,000

3 40,000 160,000

4 30,000 150,000

240,000 720,000

companys minimum desired rate or returen foe net present value analysis is 15 %. the present value of the $1 at compound intrest of 15% for 1,2,3,4 years is .870 .756 .658 and .572 determine the average rate of return on investment using straight line method and net present value