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 Income from Net Cash Income from Net Cash Year Flow Flow $31,500 31,500 31,500 31,500 $66,000 50,000 25,000 11,000 5,500 157,500 $154,000 130,000 91,000 62,000 43,000 $480,000 $96,000 96,000 Total 157,500 $480,000 Each project requires an investment of $420,000 Straight-line depreciation will be used and no residual value is expected. The committee has selected a rate of 15% for purposes of the net present value analysis. Present Value of $1 at Compound Interest Year 6% 15% 12% 0.9430.909 0.893 0.870 0.833 .890 0.826 0.797 0.7560.694 0.8400.751 0.712 0.658 0.579 0.7920.683 0.636 0.5720.482 0.7470.621 0.567 0.4970.402 0.7050.564 0.507 0.432 0.335 0.6650.513 0.452 0.376 0.279 0.6270.467 0.404 0.3270.233 0.5920.424 0.361 0.2840.194 0.5580.386 0.322 0.2470.162 10% 20% 10 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 lb. 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 ne ative 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 if only one of the two projects can be accepted, the net present value because ? cash nows occur earlier in time compared to the tracking technology. Thus, WOuld be the more attractive