Alexander Inc. is considering four proposals for the construction of new facilities. The Accountant is supposed to evaluate four proposals.

	Proposal 1	Proposal 2	Proposal 3	Proposal 4
Payback period	3 years	4 years	4 years	7 years
Net present value Internal rate	$80,000	$178,000	$166,000	$308,000
of return Accrual accounting	12%	14%	11%	13%
rate of return	8%	6%	4%	7%

Required:

How can this information be used in the decision making process for the new facilities? Does it cause any confusion? Which is the best proposal in your overview and why?