Creative Solutions, Inc. Creative Solutions, Inc. is a local firm that specializes in using its available capital to purchase assets and create small businesses. Creative Solutions receives all revenues and incurs all necessary expenses for the companies. Creative Solutions, Inc. hires management positions as required for each new business it develops. There are only a handful of full-time permanent positions. Harold Stewart initially reviews all investment projects. Harold analyzes the capital budgeting aspect of the projects and determines whether or not they will be financially profitable for the company. Harold then passes along his recommendations to Betty Johnson, the CEO/President, who makes the final decisions concerning the projects. Even though Betty makes the final decision, she relies heavily on the input received from Harold. You have recently been hired by Creative Solutions as a part-time assistant to Harold. Your job is primarily to run errands for Harold, to run figures on potential businesses, and otherwise help as needed. One day, upon arriving at work, you notice that Harold is absent. Upon entering your office, you see a note on your desk from Harold. The note reads, "My wife and I are taking a much-needed vacation to Pocatello, Idaho. I trust you to take control of things while I'm away. See you in a couple weeks. Harold." You sigh a big sigh of relief that there are only a couple of major business prospects under review right now and the recommendations aren't due to Betty for at least a month. Just then Betty pokes her head into your office. "Good, you're here. We just freed up $950,000 that needs to be put into a good investment as soon as possible. I've received three proposals for the funds and I need to know which one will provide the best return and be in the best interest of our company. Harold told me that he has a lot of confidence in your work, so I'm depending on you to come up with the recommendation. I'll need it on my desk by the end of next week." Betty places three proposals on your desk as she walks out of the room. Required: Prepare a recommendation for Betty. Assume that Creative Solutions' cost of capital is 12% after tax and the tax rate is 32%. Assume each of the three investments start on January 1, 2022 and will be terminated on December 31, 2031. In your recommendation, please prepare a comparison table showing the payback period, accounting rate of return, net present value, and internal rate of return for each proposal. You will also want to identify some important non-quantitative issues that should be considered for each proposal. Your recommendation should be a written memo to Betty prepared in a word file. The calculations for your analysis should be performed in an excel file (template provided). Submit the word and excel files on Canvas. Due April 14, 2022 by 8am Grading: 50 points, based on: (5 points) Format: Well-written, length (Please include a summary table showing the capital budgeting metrics computed in your excel file) (10 points) Recommendation reasonable based on analysis and includes a summary table of the metrics calculated in the excel worksheet. (2 page maximum) (15 points) Analysis (based on effort, reasonable assumptions, and accuracy): Include a tab for each proposal in your Excel spreadsheet showing the relevant cash flows for each year and calculations for payback, accounting rate of return, net present value, and internal rate of return. Please use the template provided on Canvas to complete the Excel spreadsheet. (10 points) Robustness of spreadsheet. Your spreadsheet should be constructed for what-if analysis. (For example, if the major inputs are changed, your solution should change) (10 points) Identify important non-quantitative issues for each proposal (at least one for each proposal). These are issues not related to the numbers or calculations in your spreadsheet. Non- quantitative issues DO NOT include changing the assumptions underlying your calculations.