June Co. is evaluating a project requiring a capital expenditure of $620,000. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows: Year Net Income Net Cash Flow 1 $45,000 $200,000 2 85,000 240,000 3 5,000 160,000 4 15,000 170,000 $150,000 $770,000 The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. a. Determine the average rate of return on investment, giving effect to depreciation on the investment. Round your answers to two decimal places. fill in the blank 1 % b. Determine the net present value. $fill in the blank 2