Average Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Elis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows: Warehouse Tracking Technology Year Net Cash Flow Net Cash Income from Operations $170,000 $112.000 $272,000 Income from Operations $53,200 53,200 53,200 53,200 53,200 85,000 170,000 170,000 170,000 230,000 162,000 43,000 19,000 111,000 120,000 2.000 25,000 Total $266,000 $850,000 $266,000 $850,000 Each project requires an investment of $560,000. Straight-line depreciation will be used, and no res dual 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% 12% 0.943 0.909 0.893 0.370 0.833 2 0.694 0.890 0.840 0.826 0.751 0.797 0.712 0.756 0.658 0.579 0.335 0.279 0.705 0.665 0.627 0.592 .558 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.432 0.376 0.327 0.284 0.247 0.233 0.194 9 10 0 0.162 Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Average Rate of Return Warehouse Tracking Technology 1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value Warehouse Tracking Technology Present value of net cash flow total Less amount to be invested Net present value 2. The warehouse has a projects can be accepted, the in time. Thus, if only one of the two net present value as tracking technology cash flows occur would be the more attractive