The capital investment committee of Windsor Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment

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

Each project requires an investment of $90,000. 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.Instructions1. Compute the following:a. The average rate of return for each investment.b. The net present value for each investment. Use the present value of $1 table appearing in this chapter.2. Prepare a brief report for the capital investment committee, advising it on the relative merits of the twoinvestments.

Skid Loader Greenhouse Income from Operations Net Cash Income from Operations Net Cash Year Flow Flow $ 45,000 $ 65,000 $ 27,000 $ 47,000 27,000 27,000 27,000 45,000 45,000 45,000 24,000 17,000 15,000 42,000 33,000 $135,000 $225,000 $135,000 $225,000