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 irvestments. The estimated operating income and net cash fows from each investment are as follows: Each project requires an investment of $560,000. Straight-line depreciation 1 will be used, and no residual value is expected, The committee has selected a rate of 10% for purposes of the net present value analysis. Required: 1a. Compute the average rate of retum for each investment. If required, hound your answer to one decimal place. 1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, round to the nearest dollar. If required, use the rrinus sign to indicate a negative net present value. 2. Prepare a brief report for the capital investment committee, advising it on the relative ments of the two investments. The front-end losder has a net present wahe because cash fows occur in time compared to the greenhouse. Thus, if only one of the two projects can be accepted, the would be the more attractive