=+P15-1 Average rate ofreturn method, net present value method, and analysis The capital investment committee ofEstate Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows:

Greenhouse Skid Loader Obj 2 Year Income from Operations Net Cash Flow Income from Operations Net Cash Flow

| SPREADSHEET 1 $16,000 $ 30,000 $26,000 $ 40,000

/ 1.

a. 45.7% 2 16,000 30,000 21,000 35,000 3 16,000 30,000 16,000 30,000 4 16,000 30,000 11,000 25,000 5 16,000 30,000 6,000 20,000

$80,000 $150,000 $ 80,000 $150,000