Mon Apr $28$

v$2.$c

OBS $26$

Average Rate of Return Method, Net Present Value Method, and Analysis

The capital investment committee of Arches Landscaping Company is co flows from each investment are as follows:

$\backslash$table$[[$Year$,$Front$-$End Loader,Greent$],[$Operating Income,Net Cash Flow,Operating Income$],[1,$$$43,700,$$$143,000,$$$92,000],[2,43,700,143,000,70,000],[3,43,700,143,000,35,000],[4,43,700,143,000,15,000],[5,43,700,143,000,6,500],[$Total$,$$$218,500,$$$715,000,$$$218,500]]$

Each project requires an investment of $$460,000.$ Straight$-$line depreci rate of $10\%$ for purposes of the net present value analysis.

Present Value of $$1$ at Compound Interest

$\backslash$table$[[$Year$,6\%,10\%,12\%,15\%,20\%],[1,0\mathrm{.}943,0\mathrm{.}909,0\mathrm{.}893,0\mathrm{.}870,0\mathrm{.}833],[2,0\mathrm{.}890,0\mathrm{.}826,0\mathrm{.}797,0\mathrm{.}756,0\mathrm{.}694],[3,0\mathrm{.}840,0\mathrm{.}751,0\mathrm{.}712,0\mathrm{.}658,0\mathrm{.}579]]$