Gavin and Alex, baseball consultants, are in need of a microcomputer network for their staff. They have

Gavin and Alex, baseball consultants, are in need of a microcomputer network for their staff.  They have received three proposals, with related facts as follows:

The company uses straight-line depreciation for all capital assets.
(1) Compute the payback period, net present value, and accrual accounting rate of return with initial investment, for each proposal. Use a required rate of return of 14%.  (10 points)
(2) Rank each proposal 1, 2, and 3 using each method separately. Which proposal is best?  Why? (Fivepoints)

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Proposal A 90,000 Proposal B Proposal C Initial investment in equupment S90,000 S90,000 Annual cash increase in operations 45,000 45,000 45,000 Year 1 80,000 10,000 45,000 90.000 ear ear Salvage value Estimated life J MS 3 yrs