Question: Average rate of return method, net present value method, and analysis for a service company The capital investment committee of lquana Inc, is considering two

 Average rate of return method, net present value method, and analysis
for a service company The capital investment committee of lquana Inc, is
considering two capital investments. The estimated operating income and net cash flows

Average rate of return method, net present value method, and analysis for a service company The capital investment committee of lquana Inc, is considering two capital investments. The estimated operating income and net cash flows from each investment are-as follows: Each project requires an investment of $560,000. Straight-line depreciation will be used, and no residual value is expected. The committee has seiected a rate of 10% for Durposes of the net present value analysis. Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. 1b. Compute the net present value for each irvestmont, Use the present value of $1 table above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. 2. Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments. The robotic assembler has a net present value because cash flows occur in time compored to the warehouse. Thus, if only one of the two projects can be accepted, the would be the more attractive

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