Excess Present Value Index and Average Rate of Return 12h

Excess Present Value Index and Average Rate of Return Swanson Corporation is evaluating five different capital expenditure proposals. The company's cutoff rate for net present value analysis is 12%. A 15% salvage value is expected from each of the investments. Information on the five proposals is as follows: Avg. Annual Net Income Required Net Present from Proposal investment Value Investment $9,100 $46,000 $8,996 5,812 76,000 12,000 27,034 106,000 18,300 7,544 21,500 146,000 68,000 15,822 13,960