Analyze which of the three proposals is a better capital investment based on the information given below. (Round the answer to one decimal place.)

	Proposal 1		Proposal 2		Proposal 3
Total present value of net cash flow	$325,000		$360,000		$280,000
Amount to be invested	$250,000		$300,000		$200,000
Net present value	$75,000		$60,000		$80,000

a.Proposal 2 is a better investment as the total present value of net cash flow is $360,000.

b.Proposal 2 is a better investment as it returns $1.2 present value per dollar invested.

c.Proposal 3 is a better investment as it returns $1.4 present value per dollar invested.

d.Proposal 1 is a better investment as the total present value of net cash flow is $325,000.