Average rate of retum method, net present value method, and analysis for a service company

each investment are as follows:

$15\%$ for purposes of the net present value analysis.

Present Value of $$1$ at Compound Interest

Required:

$1$a$.$ Compute the average rate of return for each investment. If required, round your answers to one decimal place.

Average Rate of Return

value. If required, round to the nearest dollar.

The

net present value exceeds the selected rate established for discounted cash flows $(15\%),$ while the

does not.

Thus, considering only quantitative factors, the

investment should be selected.