Capital Rationing Decision Involving Four Proposals Military Jargon 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 Brave Tango Uniform Victor Name Investment $751,674 Investment $2,137,500 Investment $2,154,185 Investment $918,346 Income Net Cash from Year Flows Operations Income from Operations Net Cash Flows Income from Operations Net Cash Flows Income from Operations Net Cash Flows 1 $88,000 $220,000 $294,500 $950,000 $247,500 $550,000 $108,000 $380,000 2 88,500 220,000 294,775 950,000 247,500 550,000 106,000 380,000 3 80,000 220,000 295,050 950,000 247,500 550,000 108,000 380,000 4 8.500 220,000 295.325 950,000 247,500 550,000 106,000 340,000 Total 90,000 $445,000 220,000 295,600 950,000 247,500 $50,000 100,000 340,000 $1,100,000 $1,475,250 $4,750,000 $1,237,500 $7,750,000 $140,000 $1,900,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 2 0.943 0.909 0.093 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.663 0.636 0.572 0.482 S 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 B 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.264 0.194 Previous Ned>