Question: 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


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 Net Year Income from Operations Net Cash Flow Income from Operations Cash Flow 1 $33,600 $106.000 571,000 $170,000 2 33,600 54,000 143,000 106,000 101.000 3 33,600 27,000 106,000 12.000 69,000 33,600 106,000 42.000 4,000 106,000 5 33,600 $530,000 $530,000 5168,000 Total $168,000 Present Value of $1 at Compound Interest 159 2096 69% 109 129 Year 0.833 0.870 0.909 0.943 0.893 1 0.756 0.694 0.797 2 0.826 0.890 0.656 01579 0.712 0.751 Next 3 0.640 previous ger In.do?invoker=&takeAssignmentSessionLocator=&inprogre... 5 4 33,600 106,000 4,000 47,000 Total $168,000 $530,000 $168,000 $530,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 N 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 0.564 0.705 0.432 0.507 6 0.335
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