Excess Present Value Index and Average Rate of Return Swanson Corporation is evaluating five different capital expenditure proposals. The company's hurdle 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:

Proposal	Required Investment	Net Present Value	Avg. Annual Net Income from Investment
A	$46,000	$8,996	$9,100
B	76,000	5,812	12,000
C	106,000	27,034	18,300
D	146,000	7,544	21,500
E	68,000	15,822	13,960

a. Compute the excess present value index for each of the five proposals. Round answers to three decimal places.

Proposal	Excess PV Index
A	Answer
B	Answer
C	Answer
D	Answer
E	Answer

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	Answer
B	Answer
C	Answer
D	Answer
E	Answer

c. Assume that Swanson will commit no more than $200,000 to new capital expenditure proposals.

Using the excess present value index, which proposals would be accepted. Select the best answer.

AnswerProposals A and BProposals A and EProposals B and DProposals C and EProposals A and D

Now using the average rate of return, which proposals would be accepted? Select the best answer.

AnswerProposals A and BProposals A and EProposals B and DProposals C and EProposals A and D

Please answer all parts of the question.