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 income from operations, and net cash flow for each proposal are as follows: The company's capital rationing policy requires a maximum cash payback period of three years. In addition, a minimum average rate of return of 12% is required on all projects. If the preceding standards are met, the net present value method and present value indexes are used to rank the remaining proposals. Present Value of $1 at Combound Interest Required: 1. Compute the cash payback period for each of the four proposals. 2. Giving effect to straight-line depreciation on the investments and assuming no estimated residual value, compute the averag rate of return for each of the four proposals. If required, round your answers to one decimal place. 3. Using the following format, summarize the results of your computations in parts (1) and (2) by placing the calculated amounts in the first two columns on the left and indicate which proposals should be accepted for further analysis 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 15% and the presen value of $1 table above. Round to the nearest dollar. 4. For the proposals accepted for further analysis in part (3), compute the net present value. Use a rate of 15% and the present value of $1 table above. Round to the nearest dollar. 5. Compute the present value index for each of the proposals in part (4). If required, round your answers to two decimal places. 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