Average Rate of Return Method, Net Present Value Method, and Analysis for a service company The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows: Front-End Loader Greenhouse Income from Net Cash Income from Net Cash Year Operations Flow Operations Flow 1 $45,000 $139,000 $95,000 $222,000 2 45,000 139,000 72,000 188,000 3 45,000 139,000 36,000 132,000 4 45,000 139,000 16,000 90,000 5 45,000 139,000 6,000 63,000 Total $225,000 $695,000 $225,000 $695,000