A company is considering the following three capital expenditures proposals:

(a.) An investment of $10,000 promising cash reciepts of $3,600 per year for 5 years.

(b.) An investment of $10,000 promising a single cash reciept of $200,000 after 5 years.

(c.) An investment of $10,000 promising a cash reciept of $2,000 each year for 4 years and $12,000 in the fifth year.

(1.) Prepare an analysis to determine the acceptability of each of the capital expendature proposals, assuming a 16% minimum required rate of return.

(2.) If only one of the three proposals can be selected for investment, which one should it be? Write a brief justification for your selection.