average rate of return method, net present value method, and analysis

Average rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Cross Continent Trucking Inc. is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows: Warehouse Tracking Technology Year Income from Operations Net Cash Flow Income from Operations Net Cash Flow $47.500 $100,000 76,000 $240,000 203.000 47.600 $150,000 150,000 150,000 150,000 150 000 38,000 143,000 17.000 98.000 47,600 47,600 $238.000 66,000 7,000 $238.000 Total $750,000 $750,000 Each project requires an investment of 5560.000. Straight line depreciation will be used, and no residual value is expected. The committee has selected a rate of 15% for purposes of the newest value analysis Present Value of Year 6 101 0.943 0.909 0.890 26 0.751 0.540 0.792 0.747 0.705 0.665 0.622 a Compound Interest 121 1 20 0.19 0.00 0.833 0.797 0.756 0.694 07120658 0.579 0.636 0.572 0.482 0.567 0.497 0.402 0.507 0.432 0.335 - 0.452 0.116 0. 270 404 03 02 0.621 0.564 0.513 467 Print them 0.792 0.572 - Show Me How Calculator Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.683 0.636 0.482 0.747 0.621 0.567 0.402 0.705 0.564 0.507 0.513 0.452 0.376 0.279 0.622 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.234 0.194 100.550 0.386 0.322 0.247 0.10 Required: 0.49 0.335 0.665 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 the above required, use the mission to indicate a negative net present value Tracking Technology Present value of net cash flow total Less amount to be invested Net present value the tracking technology. Thus, 2. The warehouse has net present value because only one of the two projects can be accepted, the would be the more attractive Check My Work 3 more Check My Work uses remaining & Previous Next Email Instructor Save and Exit Submit Assignment for Grading