1. Emuskla Inc.. is evaluating two projects. Project 1 is a project requiring a capital expenditure of $814,400. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows: Year 1 2 3 4 Net Income $ 57,000 71,000 89,500 46,000 $263,500 Net Cash Flow $335,000 258,000 195,000 160,000 $948,000 The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is.893, .797, .712, and .636, respectively. Determine: (a) the average rate of return on investment, including the effect of depreciation on the investment, and (b) the net present value