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.