Excess Present Value Index and Average Rate of Return Highpoint Company is evaluating five different capital expenditure proposals. The company's hurdle rate for net present value analyses is 12%. A 10% salvage value is expected from each of the investments. Information on the five proposals is as follows: Proposal Required Investment PV at 12% of After-Tax Cash Flows Avg. Annual Net Income from Investment A $288,000 $328,030 $37,400 218,000 254,780 26,000 178,000 191,040 19,200 198,000 234,300 27,600 E 146,000 154,990 14,960 B D a. Compute the excess present value index for each of the five proposals. Round answers to three decimal places. Proposal Excess PV Index A B D E b. Compute the average rate of return for each of the five proposals. Round answers to one decimal place. For example, 0.4567 equals 45.7% Proposal Avg. Rate of Return A % B % C % D % E % C. Assume that Highpoint will commit no more than $500,000 to new capital expenditure proposals. Using the excess present value index, which proposals would be accepted. Select the best answer. Now using the average rate of return, which proposals would be accepted? Select the best