Average fate of Return Method, Net Present Value Method, and Analysis for a Service Company The capital irvestment committee of Arches Landscaping Company is considering two capital investments. The estimated operating income and net cash fows from er investment are as tollows: Each project requires an investment of 575,000 . Straight-line depreciapoe will be used, and no revidual value is orpected, The comm, thee has selected a rate of 126 for purposes of the net present value analynis. 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. 10. Compute the net present value for each investment. Use the present value of \$1 table above. If required, round to the nearest dollar. 2. Wrepare a brief report for the capital investment committee, advising it on the relative ments of the fwo investmenth The front-end loader has a of the two projects can be accepted, the net present value because costh flows occur earlier in time compared to the greenheuse, Thus, if only would be the more attractive