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Capital Rationing Decision for a Service Company involving Four Proposal Cercast Communications Inc. is considering allocating a limited amount of capital investment funds among four

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Capital Rationing Decision for a Service Company involving Four Proposal Cercast Communications Inc. is considering allocating a limited amount of capital investment funds among four propea. The amount of proposed Investment stated income from perion and net cash flow for each proposal are as follows: Income from Net Cash Investment Year Operations Flow Proposal A: $450,000 1 $30,000 $ 120,000 2 30,000 120,000 2 20.000 110,000 10,000 100,000 (30,000) 60,000 $ 60,000 5510,000 Proposal 200,000 1 $ 60,000 $ 100,000 2 40,000 B0.000 20,000 50,000 4 10.000) 30,000 5 (20,000) 20.000 $ 90,000 $290,000 Proposal 5320,000 1 $36.000 $100,000 26,000 90.000 on $120,000 $ 440,000 Proposal D: $540,000 1 $92,000 3200,000 2 72,000 180.000 52,000 160.000 12,000 120,000 8.000) 100,000 $220,000 $760,000 The company's capital rationing policy requires a mamum cash paybad period of three years. In addition, a minimum average rate of return of 12 is required on project of the precede standards are met, the present a method and present valse indexes are used to rank the remaining proposal Year Present Value of $1 at Compound Interest 10% 124 151 6.900 0.99 0.870 033 0.890 0.126 0.797 0.756 0.694 1 2 0.140 0.751 0.712 0.658 0.579 0.799 0.683 0.636 0.572 0.482 S 0.747 0.621 0.567 0.497 0.402 6 0.705 0.507 0.432 0335 0.564 0.513 7 0.665 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 10 OSSB 0.356 0.322 0.162 Cash Payah Period rup PG Pro Average Rates of tum Pro Pro 1. thing the following format, summarize the rest of your computations in parts (1) and 2) by Racing the calculated amounts in the first two so the left and which should be accepted for further analysis and which should be rejected. It required, round your answers to one decimal plan Propel Cash Payback Pearl Average Rate of Return Acerpt or Med A 4. For the procesacorded for further analysis in part compute the rest value. Use a rate of 126 and the rest value of 11 table store. Hound to the rest Note: Select the proposalsinhabetic order. Select the proposal accepted for further analysis Present value of net cash flow total Not present 5. Compute the presentatie Index for each of the proposals is part (4). Id, round your answers to the impact NoteSelect the proposa in phabetic order Select proposal to commit Presentato index Present a new rounded) 6. Bank the proposals from mest attractive to least attractive, based on the petent hot net shows comented in art (4) Rank tot Rank 2nd 7. Rank the proposals from most attractive to least attraction based on the present Valetinde computed in part (5) Ranki Rank 2nd in the 3. The present indexes indicate that though his the larger turistas ctives Propos presentato per donar lavested. Proposal requires the larger investment. The management should westments for Proposal Investing in Propos at any other qualitative considerations that may impact the decision Capital Rationing Decision for a Service Company involving Four Proposal Cercast Communications Inc. is considering allocating a limited amount of capital investment funds among four propea. The amount of proposed Investment stated income from perion and net cash flow for each proposal are as follows: Income from Net Cash Investment Year Operations Flow Proposal A: $450,000 1 $30,000 $ 120,000 2 30,000 120,000 2 20.000 110,000 10,000 100,000 (30,000) 60,000 $ 60,000 5510,000 Proposal 200,000 1 $ 60,000 $ 100,000 2 40,000 B0.000 20,000 50,000 4 10.000) 30,000 5 (20,000) 20.000 $ 90,000 $290,000 Proposal 5320,000 1 $36.000 $100,000 26,000 90.000 on $120,000 $ 440,000 Proposal D: $540,000 1 $92,000 3200,000 2 72,000 180.000 52,000 160.000 12,000 120,000 8.000) 100,000 $220,000 $760,000 The company's capital rationing policy requires a mamum cash paybad period of three years. In addition, a minimum average rate of return of 12 is required on project of the precede standards are met, the present a method and present valse indexes are used to rank the remaining proposal Year Present Value of $1 at Compound Interest 10% 124 151 6.900 0.99 0.870 033 0.890 0.126 0.797 0.756 0.694 1 2 0.140 0.751 0.712 0.658 0.579 0.799 0.683 0.636 0.572 0.482 S 0.747 0.621 0.567 0.497 0.402 6 0.705 0.507 0.432 0335 0.564 0.513 7 0.665 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 10 OSSB 0.356 0.322 0.162 Cash Payah Period rup PG Pro Average Rates of tum Pro Pro 1. thing the following format, summarize the rest of your computations in parts (1) and 2) by Racing the calculated amounts in the first two so the left and which should be accepted for further analysis and which should be rejected. It required, round your answers to one decimal plan Propel Cash Payback Pearl Average Rate of Return Acerpt or Med A 4. For the procesacorded for further analysis in part compute the rest value. Use a rate of 126 and the rest value of 11 table store. Hound to the rest Note: Select the proposalsinhabetic order. Select the proposal accepted for further analysis Present value of net cash flow total Not present 5. Compute the presentatie Index for each of the proposals is part (4). Id, round your answers to the impact NoteSelect the proposa in phabetic order Select proposal to commit Presentato index Present a new rounded) 6. Bank the proposals from mest attractive to least attractive, based on the petent hot net shows comented in art (4) Rank tot Rank 2nd 7. Rank the proposals from most attractive to least attraction based on the present Valetinde computed in part (5) Ranki Rank 2nd in the 3. The present indexes indicate that though his the larger turistas ctives Propos presentato per donar lavested. Proposal requires the larger investment. The management should westments for Proposal Investing in Propos at any other qualitative considerations that may impact the decision

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