Capital Rationing Decision for a Service Company Involving Four Proposals follows: Required: 1. Compute the cash payback period for each of the four proposals. Average Rate of Return Proposal A: % Proposal B: % Proposal C: % Proposal D: % 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. Select the proposal accepted for further analysis. Present value of net cash flow total Amount to be invested Net present value 5. Compute the present value index for each of the proposals in part (4). If required, round your answers to two decimal places. Select proposal to compute Present value index. Present value index (rounded) 6. Rank the proposals from most attractive to least attractive, based on the present values of net cash flows computed in part (4). Rank 1st Rank 2nd 7. Rank the proposals from most attractive to least attractive, based on the present value indexes computed in part (5). Rank 1st Rank 2nd 8. The analysis indicates that although Proposal requires the larger investment. Thus, management should use investment resources for Proposal considerations that may impact the decision. has the larger net present value, it is not as attractive as Proposal before investing in Proposal in terms of the amount of present value per dollar invested. Proposal absent any other qualitative