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 operating income and net cash flows from investment are as follows: Front-End Loader Greenhouse Net Cash Operating Income Operating Income Net Cash Flow Year Flow 1 $101,000 $232,000 2 196,000 3 $48,300 48,300 48,300 48,300 48,300 $241,500 $145,000 145,000 145,000 145,000 145,000 $725,000 4 77,000 39,000 17,000 7,500 $241,500 138,000 94,000 65,000 $725,000 5 Total 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 operating income and net cash flows from investment are as follows: Front-End Loader Greenhouse Net Cash Operating Income Operating Income Net Cash Flow Year Flow 1 $101,000 $232,000 2 196,000 3 $48,300 48,300 48,300 48,300 48,300 $241,500 $145,000 145,000 145,000 145,000 145,000 $725,000 4 77,000 39,000 17,000 7,500 $241,500 138,000 94,000 65,000 $725,000 5 Total