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 flows from each investment are as follows: Front-End Loader Greenhouse Operating Income Net Cash Year Flow Operating Income Net Cash Flow 1 $25,000 $ 40,000 $11,250 $ 26,250 2 20,000 35,000 11,250 3 26,250 7,000 22,000 11,250 4 26,250 3,000 18,000 11,250 26,250 5 1,250 16,250 11,250 26,250 Total $56,250