Average Rate of Retum Method, Net Present Value Method, and Analysis for a service company The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated operating income and net cash fisws from each investment are as follows: Each project requires an investment of $460,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selecfed a rate of 12% for purposes of the net present value analysis. 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. 1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. 2. Prepare a brief report for the capital inwestment committee, advising it on the relative menits of the two investments. The front-end loader has a net present value because cash flows occur in time compared to the greenhouse. Thus, if only one of the two projects can be occepted, the would be the more attractive