Average rate of retum method, net present value method, and analysis for a service company The copital investment committee of lguana inc. is considering two capitel investments. The estimated operating income and net cash fiows from each investment are as follows: Each project requires an investment of $480,000. Straight-line depreciation will be used, and no residuai value is expected. The committee has selected a rate of 10% for purpases of the net present value analysis. 1a. Compute the average rate of retum for each investment. If required, round your answer to one decimal place. 1b. Kompute the net present value for each inyestment. Use the present value of $1 table above. If required, round to the nearest doltar. If required, use the minus sign to indicate a negative net present value. 2. Prepare a brief repert for the capital investment committee, advising it on the relative ments of the two investments The robotic assembier has a net present value because cash flaws occur in time compared to the warehouse. Thus, tonly ane of the two projects can be accepted, the would be the more attractive