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In: AccountingThe capital investment committee of Ellis Transport and StorageInc. is considering two investment projects. The...The capital investment committee of Ellis Transport and StorageInc. is considering two investment projects. The estimated incomefrom operations and net cash flows from each investment are asfollows: Warehouse Tracking Technology Year Income from OperationsNet Cash Flow Income from Operations Net Cash Flow 1 $47,500$147,000 $100,000 $235,000 2 47,500 147,000 76,000 198,000 3 47,500147,000 38,000 140,000 4 47,500 147,000 17,000 96,000 5 47,500147,000 6,500 66,000 Total $237,500 $735,000 $237,500 $735,000 Eachproject requires an investment of $500,000. Straight-linedepreciation will be used, and no residual value is expected. Thecommittee has selected a rate of 12% for purposes of the netpresent value analysis. Present Value of $1 at Compound InterestYear 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.8900.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.7920.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.7050.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.6270.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.5580.386 0.322 0.247 0.162 Required: 1a. Compute the average rate ofreturn for each investment. If required, round your answer to onedecimal place. Average Rate of Return Warehouse % TrackingTechnology % 1b. Compute the net present value for each investment.Use the present value of $1 table above. If required, use the minussign to indicate a negative net present value. Warehouse TrackingTechnology Present value of net cash flow total $ $ Less amount tobe invested $ $ Net present value $ $ 2. The warehouse has a netpresent value as tracking technology cash flows occur in time.Thus, if only one of the two projects can be accepted, the would bethe more attractive.