Average Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Touch of Eden Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows: Each project requires an investment of $80,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes of the net present value analysis. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 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 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 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 Greenhouse % Front End Loader % 1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, round to the nearest dollar. Greenhouse Front End Loader Present value of net cash flow total $ $ Less amount to be invested $ $ Net present value $ $ 2. The greenhouse has a Selectlargersmaller net present value because Selectlargersmaller cash flows occur earlier in time compared to the front end loader. Thus, if only one of the two projects can be accepted, the Selectfront end loadergreenhouse would be the more attractive.