2. Giving effect to straight-line depreciation on the investments and assuming no estimated residual value, compute the average rate of return four proposals. If required, round your answers to one decimal place

3. Using the following format, summarize the results of your computations in parts (1) and (2). By placing the calculated amounts in the first two columns on the left and indicate which proposals should be accepted for further analysis and which should be rejected. If required, round your answers to one decimal

place

4. For the proposals accepted for further analysis in part (3), compute the net present value. Use a rate of 12% and the present value of $1 table above. Round to the nearest dollar.

5. Compute the present value index for each of the proposals in part (4). If required, round your answers to two decimal places

the answers used for parts 1 and 2 are needed for question 3. I believe the criteria is what projects have the better cash payback period as well as a better average rate of return. Those projects will be accepted for further analysis while the others will be rejected.

Slearcast Communications Inc. Is considering allocating a limited amount of capital investment funds among four proposais. The amount of proposed nvestment, estimated income from operations, and net cash flow for each proposal are as follows: The company's capital rationing policy requires a maximum cash payback period of three years. In addition, a minimum average rate af return of 12 th is required on all projects. If the preceding standards are met, the net present value method and present volun inderes are used to rank the remaing proposals. Required: 1. Compute the cash payback period for each of the four proposals. 2. Giving effect to straight-iline depreciation on the Investments and assuming no estimated residual value, compute the average ratu af retum four proposals. If required, round your answers to one decimal place. Giving effect to straight-line depreciation on the investments and assuming no estimated residual value, compute the average rate of refitn for each of the proposals. If required, round your answers to one decimal place. 3. Using the following format, summarize the results of your computations in parts (1) and (2). By placing the calculated amounts in the -irat two columins on the left and indicate which proposals should be accepted for further analysis and which should be rejected. If required, round your answais to che dicimal Round to the nearett dellar. 6. Phank the propotais from mast attractive to least attractive, based on the present values of net cash flows compated in pait Ronk int Rank ond 7. Ronk the proposals from most aftractive to least attractive, baced on the present value indexis canyedted in pait (3). thank 1st Rink- ond