Average Rate of Return Method, Net Present Valoe Method, and Analysis The capital investment committee of Elis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and ret cash flows from each investment are as follows: Warehouse Tracking Technology Income from Net Cash Income from Year Net Cash Operations Flow Operations Flow 1 $52,500 $172,000 $110,000 $275,000 2 52,500 172,000 84,000 232,000 2 52.500 172.000 42.000 163,000 4 $2.500 172.000 13,000 112,000 5 52.500 172,000 8,500 78,000 Total $262.500 5060,000 $262.500 S860,000 Each project is an investment of $500,000. Straight line depreciation will be used and no residual value is expected. The committee has selected a rate of ion for purposes of the net Desenvolve analysis Each project requires an investment of $500,000. 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 Present Value of $1 at Compound Interest Year 6 10% 129 15% 20%. 1 0.943 0.900 0.893 0.870 0.833 2 0.890 9.026 0.797 0.756 0.594 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0,482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 2 0.565 0.513 0.452 0.370 0.279 0.622 0.407 0.404 0.327 0.23 0.592 0.424 0.361 0.264 0.194 10 0.550 0.336 0.322 0.247 0.163 Required: 16. Compute the average rate of return for each Investment. If required, round your answer to one decimal place Average rate of Return Warnhouse Tracking Technology 1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, use the minussion to indicate a negative net present value Warehouse Tracking Technology Present value of net cash flow total Les amount to be invested Net present value 2. The warehouse has a net present value as tracking technology cash flows occur in time. Thus, if only one of the two projects can be accepted, the would be the more attractive