Average rate of return method, net present value method, and analysis for a service company The capital investment committee of Lquana Inc is considering two capital investments. The estomated operating income and net cash flows from each investment are as follows: Each project requires an investment of $520,000. Straight-fine depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes of the net gresent value analyas. Each project requires an itivestrvent of $520,000. Straight-line depecciation will be used, and no residual value is expected. The committee has sclected a rate of 12 . for purposes of the net present value analysis: Requuired: 1a. Compote the average rate of return for eadh invectment. If required, round your answer to one decimal place. 1b. Compute the net presentivalue for each investment. Use the present value of $1 table above. If required, round to the nearest dollar. If requared, use the minus sign to indicate a negative net present value. 2. Prepare a berief report for the capital investment committee, advising it on the relatwe meriti of the two anwestmenti. The robetic assembler has a net present value becmuse cash flows occur in tame compared to the warehouse, Thus, if enly one of the two projects can be accepted, the would be the more attractive