Question: Avenge Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Ellen Transport and Storage Inc. is considering two investment

 Avenge Rate of Return Method, Net Present Value Method, and Analysis
The capital investment committee of Ellen Transport and Storage Inc. is considering

Avenge Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Ellen Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows: Warehouse Income from Net Cash Operations Flow Year 1 2 $57,200 57,200 57,200 57,200 37,200 $188,000 188,000 188,000 188.000 Tracking Technology Income from Net Cash Operations Flow $120,000 $300,000 92,000 254,000 46,000 179,000 20,000 122,000 3,000 84,000 $280,000 $940,000 3 3 168,000 5940,000 Total $286.000 of 15 for Each project requires a weatment of 5520,000 Stotine depreciation will be well, and no rendont vitae is expected. The committee hoste purposes of the net procent value analys Present Value of Si at Compound Interest Year 6. TO 12 15 2016 1 0.43 0,900 0.893 0.70 0.833 0.000 0.826 0.92 0.756 0.600 0.840 0.751 0.712 0.658 0.570 0.792 0.663 0.636 0.572 0.482 4 3 0.80 0.212 0.658 0.579 0.751 0.683 4 0.792 0.636 0572 0.482 5 0.742 0,621 0.567 0.497 0.402 6 0.564 0.507 0.632 0.705 0.665 0.622 0.335 0.279 7 0.513 0.452 0.376 8 0.467 0.404 0.233 0.327 0.284 9 0.592 0.424 0.194 0.361 0.322 10 0.558 0.386 0.247 0.162 Requiredi 1a. Compute the average rate of return for each investment. It required, round your answer to one decimal place Average Rate of Return Warehouse Tracking Technology 1b. Compute the net present value for each investment. The the present value of 51 table bove. It required, use the minus sige tor Indicate a nepative net present value Warehouse Tracking Technology Present value of net cash flow total Les amount to be invested 520,000 520, 01 / Net present value

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!