Capital Rationing Decision for a Service Company Involving Four Proposals Clearcast Communications Inc. is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash flow for each proposal are as follows: Income from Operations Investment Year Net Cash Flow Proposal A $450,000 $ 30,000 $ 120,000 2 30,000 120,000 20,000 110,000 4 10,000 100,000 5 (30,000) 60,000 $ 60,000 $510,000 Proposal B: 200,000 1 $ 60,000 $100,000 2 40,000 80,000 3 20,000 60,000 4 (10,000) 30,000 5 (20,000) 20,000 $ 90,000 $290,000 Proposal C: $320,000 1 $ 36,000 $ 100.000 2 3 26,000 26.000 90,000 Mir Work 90.000 Previous