Question: Please figure out the boxes with a red X . Average rate of return method, net present value method, and analysis for a service company

Average rate of return method, net present value method, and analysis for a service company The capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Year 1 2 3 4 5 Total Robotic Assembler Operating Income $45,000 45,000 45,000 45,000 45,000 $225,000 Robotic Assembler Net Cash Flow $145,000 145,000 145,000 145,000 145,000 $725,000 Warehouse Operating Income $95,000 72,000 36,000 16,000 6,000 $225,000 Warehouse Net Cash Flow $232,000 196,000 138,000 94,000 65,000 $725,000 Each project requires an investment of $500,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes of the net present value analysis. Present Value of $1 at Compound Interest Year 1 2 3 4 6 7 8 10 Required: 60/0 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.424 0.386 12% 0.893 0.797 0.712 0.636 0.567 0.507 452 0.404 0.361 0.322 15% 0.870 0.756 0.658 0.572 .497 0.376 0.327 0.284 0.247 20% 0.833 0.694 0.579 0.402 0.335 0.279 0.233 0.194 0.162 la. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Robotic Assembler Warehouse Average Rate of Return 58 58 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 minus sign to indicate a negative net present value. Present value of net cash flow Amount to be invested Net present value Robotic Assembler 500,000 Warehouse 500,000
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