Company Standards: Cash payback period 3 year maximum Minimum Average Rate of Return: 12% PV factor @ 12% PV of Net Cash Flows Proposal A: Year Investment $ 450,000 Net Cash Flow 11 S 120.000 120,000 110,000 100,000 60,000 510,000 Proposal B: $ 200,000 100,000 80,000 60,000 30,000 20,000 290,000 Proposal C $ 320,000 100,000 90,000 90,000 80,000 80,000 440,000 Return Rate: 12% Cash Payback Period Present Value of Net Annual Net Present Cash flows value Profitability Index Proposal B 1. Calculate the values for each proprosal. 2. Which proposal would you choose? Why