Capital Rationing Decision Involving Four Proposals Kopecky Industries 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: Project Name Sierra Tango Uniform Victor Investment $825,000 Investment $2,770,865 Investment $1,266,680 Investment $1,040,013 Income from Net Cash Year Flows Operations Income from Operations Net Cash Flows Income from Operations Net Cash Flows Income from Operations Net Cash Flows 1 $77,000 $220,000 $285,000 $950,000 $180,000 $400,000 $109,000 $390,000 2 77,500 220,000 285,275 950,000 180,000 400,000 109,000 390,000 3 78,000 220,000 285,550 950,000 180,000 400,000 109,000 390,000 4 78,500 220,000 285,825 950,000 180,000 400,000 109,000 390,000 5 Total 79,000 $390,000 220,000 286,100 950,000 180,000 400,000 109,000 390,000 $1,100,000 $1,427,750 $4,750,000 $900,000 $2,000,000 $545,000 $1,950,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 . 0840 0.251 0.712 0.658 0.570