Warehouse Income from Year Operations Net Cash Flow Income from The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows: Tracking Technology Net Cash Operations Flow 1 $48,400 $151,000 $102,000 $242,000 2 48,400 151,000 77,000 204,000 3 48,400 151,000 39,000 143,000 4 48,400 151,000 17,000 98,000 5 48,400 151,000 7,000- 68,000 Total $242,000 $755,000 $242,000 $755,000 Each project requires an investment of $440,000. 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