Average State of Beton Method, et Present Value Method, and Analysis for a service company The Grainvestment committee of Arches Landscaping Company is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows Front End Loader Greenhouse Operating Net Cash Operating Net Cash Year Income Flow Income Flow 1 560,200 $220,000 $143,000 $352,000 60,200 720,000 100,000 297,000 65,200 20,000 55,000 209,000 4 68,200 220.000 24,000 143,000 5 66,200 220,000 10,000 99.000 Total $341.000 $1,100,000 $541,000 $1,100,000 Each project requires an investment of $20,000. Straight line depreciation will be used, and no residual value is expected. The committee has selecter rate of 125 for purposes of there present value analysis Present Value of $1 at Compound Interest Year 10 12% 15 20 1 0.943 0.900 0.803 0.870 0.833 08190 0.820 0.197 0,756 0.694 0.540 0.751 0.712 0.658 0.792 0.636 0.572 4 5 10 0.621 00 0,497 04402 0.705 0.564 0.507 0.432 0335 2 0.665 0.513 0.452 0.376 0.279 0.027 0.467 0.100 0.327 0.233 0.592 0.424 0.363 0.284 0.194 0.550 0.36 0.322 0.247 0.16% Hexquired 1. Compute the werage rate of retom for each investment. Il required, round your answer to one decimal place. Average Rate of Return Front End Loader Greenhouse 1b. Compute the represent value for each westment, Use the present value of table above. If required, round to the nearest dollar. It required, use the minus sinto indicate a negative het present value Front End Loader Greenhouse Pre value of net cash flow Amount to be wivested Net present value 2. Prepare a bnet report for the capital investment committee, advising it on the relativements of the two investments The front end leader has a not present value because cash flow occur in time compared to the greenhouse, Thus, it only one of the two projects can be accepted, the would be the more attractive