Average Rate of Retum Method, Net Present Value Method, and Analysis for a service company The capital investment committee of Arches Landscaping Compamy is considering two capital investments, The estimated income from operations and net cash fioms from each investment are as follows: Each project requires an investment of $620,000. Straight-line depreciation will be used; and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis. Drasent Value of $1 at Compound Interest 1a. Compute the average rate of return for each investment, it required, round vour answer to one decimal piace. 16. Compute the net present value for each investment. Use the present value of 51 table above. If required, use the minus sign ta indicate a negative net present value. 2. Prepare a brief report for the copital investment committee, advising it on the relative ments of the two investments. The front-end loader has a net present value because the cash flows occur two projects can be accepted, the would be the more attractive