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The capital investment committee of Overnight Express Inc. is considering two investment projects. The estimated...

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Accounting

The capital investment committee of Overnight Express Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows:
Distribution Center Expansion Income from Operations:
$26,600,$26,600,$26,600,$26,600,$26,600 Total:$133,000
Distribution Center Expansion Net Cash Flows:
$87,000,987,000, $87,000, $87,000,$87,000 Total $435,000
Technology Income from Operations:
$56,000,$43,000, $21,000,99,000,94,000 Total: $133,000
Technology Net Cash Flows:
$139,000,$117,000,$83,000,$57,000,$39,000 Total $435,000
The Distribution Center Expansion requires an investment of $380,000 while the Internet Tracking Technology requires an investment of $302,000. Straight-line depreciation will be used, and no residual value is expected for either project.
Required:
1. Compute the average rate of return for each investment. Round to one decimal place.

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