Average Rate of Return Method, Net Present Value Method, and Analysis The capital investment committee of Overnight Express Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows: Distribution Center Expansion Internet Tracking Technology Income from Net Income from Net Year Operations Cash Flow Operations Cash Flow 1 $39,600 $128,000 $83,000 $205,000 2 39,600 128,000 63,000 173,000 3 39,600 128,000 32,000 122,000 4 39,600 128,000 14,000 83,000. 5 39,600 128,000 6,000 57,000 Total $198,000 $640,000 $198,000 $640,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579