VE many The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated operating income and net cash now from each investment are as follows: Front-End Loader Operating Income Year Net Cash Flow 1 562,000 2 62,000 Greenhouse Operating Net Cash Income Flow $130,000 $320,000 99,000 270,000 50,000 190,000 22,000 130,000 9,000 90,000 $310,000 51,000,000 3 $200,000 200,000 200,000 200,000 200,000 $1,000,000 62,000 62,000 62,000 41 5 Total $310,000 mitte Selected are Each project requires an investment of 5620,000. Straight-line depreciation will be used, and no residual value is expected. The of 12% for purposes or the net present value analysis Year 1 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 2 3 eBook Show Me How Print item 3 0,840 0.751 0.712 0.658 0.579 4 0.792 0.572 0.482 0.683 0.621 0.636 0.567 5 0.747 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0,513 0.376 0.279 0,452 0.404 8 0.627 0.467 0.327 0.233 9 0,24 0.361 0.592 0.558 0.284 0.247 0.194 0.162 10 0.386 0.322 Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place Average Rate of Return 90 Front-End Loader Greenhouse 1b. Compute the net present value for each investment. Use the present value of 51 table above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value Front-End Loader Greenhouse Present value of net cash flow Amount to be invested Net present value Previous Next ia. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Average Rate of Return Front-End Loader % Greenhouse M 1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, round to the nearest dollar. It required, use the minus sign to indicate a negative net present value Greenhouse Present value of net cash flow Amount to be invested Front-End Loader Net present value 2. Prepare a brief report for the capital investment committee, advising it on the relativements of the two investments in time compared to greenhouse The front-end loader has a net present value because cash flows occur Thus, if only one of the two projects can be accepted, the would be the more attractive