Capital Rationing Decision for a Service Company Involving Four Proposals Renaissance Capital Group is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated operating income, and net cash flow for each proposal are as follows: Operating Income Net Cash Flow Year Investment $680,000 Proposal A: $ 64,000 64,000 64,000 24,000 24,000 $240,000 $ 26,000 26,000 6,000 6,000 (44,000) $ 20,000 $ 200,000 200,000 200,000 160,000 160,000 $ 920,000 $ 90,000 90,000 70,000 70,000 20,000