Caputat Rationing Decision Involving four Preposals Kopecky Industries Inc. is considering allocating a limited amount d capital investment funds among four proposals. The arnount of propased investrient, estimated income from. operatsens, and het cash flow for each proposal ore as follows: The company's capital raboning pobicy requires a maxomum cash psybock penod of three years. In addiben, a maimum average rate of roturn of 20% is required on all projects, If the preceding standards are mot, the net present value method and presumt value indexes are ased for rank the remaining proposals. Required: 1. Compute the canh paytack period for each of the four proposals. Assune Uat net cach flows are uniform throughout the year: 2. Grving effect to straight line depreciation on thie investmems and assuming ne estimated resitual value, compute the average rate of return for each of the four proposals. Hound to one decinal place. 3. Whing the results from parts (1) and (2) determine which proposols sheuld be accepted for further analyis and which ahould be rejected. son to indicate a subtraction or negative net present value. 5. Compute the present value index for each of the proposals in part (4). Nound to two decinal places. 5 A 6. Rank the proposals from most attractive to least attractive, based on the present values of net cash fows computed in part (4). Rank tit Mank 2nd 7. Rank the proposals from most attractrve to least atroctive, based on the present value indexes computed in part (5). 6. Rank the proposals from most attractive to least attrattive, baset on the present values of net cash Fows computed in part (4). Rankist Rank 2nd 7. Eant the propesals from most artractive to least attractive, based on the presert vilue indeces computed in port (5) rank ist rtank 2nd 8. Fased an your calculations above, campleter the statements below tooking as the present value computations. has the larger net present value. Is attractive in terms of amount of present value per dollar inveted. Comparing the two proposals, their present vitue undices 1. tastly, has the larger intial investment. considerng all this information, Kopecky should proceed with