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 Net Cash Income Investment Year Flow Proposal A: $680,000 1 $ 64,000 $ 200,000 2 64,000 200,000 3 64,000 200,000 4 24,000 160,000 5 24,000 160,000 $240,000 $920,000 Proposal B: $320,000 1 $ 26,000 $ 90,000 2 26,000 90,000 3 6,000 70,000 4 6,000 70,000 5 (44,000) 20,000 $ 20,000 $340,000 Proposal C: $108,000 1 $ 33,400 $ 55,000 2 31,400 53,000 3 28,400 50,000 4 25,400 47,000 5 23,400 45,000 $142,000 $ 250,000 Proposal D: $400,000 1 $100,000 $ 180,000 2 100,000 180,000 3 80,000 160,000 4 20,000 100,000 5 80,000 $300,000 $700,000