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Goodwill constructions LLC is considering allocating a limited amount of capital investment funds among three proposals. The amount of proposed investment, and net cash flow

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Goodwill constructions LLC is considering allocating a limited amount of capital investment funds among three proposals. The amount of proposed investment, and net cash flow for each proposal are as follows: 1. Proposed Investment OMR 2. Each Proposal has expected life of 8 years. 3. The cost of capital is.? %. (Present Value table attached) 3 4 Net cash flow during the expected life of the Proposals is given below. Year 1 2 5 Proposal A OMR Proposal B OMR 1? Proposal OMR Note: 1. Net Cash inflow must be different for every year. Required: Which Proposal is preferable on the basis of the following capital budgeting evaluation methods? And Why? 1) Payback Period 11) Net Present Value The following are the present value factors 1 2 3 4 5 Discount factor/year 10% 11% 12% 13% 14% 15% 0.909 0.901 0.893 0.885 0.877 0.870 0.826 0.812 0.797 0.783 0.769 0.756 0.751 0.731 0.712 0.693 0.675 0.658 0.683 0.659 0.636 0.613 0.592 0.572 0.621 0.593 0.567 0.543 0.519 0.497 Goodwill constructions LLC is considering allocating a limited amount of capital investment funds among three proposals. The amount of proposed investment, and net cash flow for each proposal are as follows: 1. Proposed Investment OMR 2. Each Proposal has expected life of 8 years. 3. The cost of capital is.? %. (Present Value table attached) 3 4 Net cash flow during the expected life of the Proposals is given below. Year 1 2 5 Proposal A OMR Proposal B OMR 1? Proposal OMR Note: 1. Net Cash inflow must be different for every year. Required: Which Proposal is preferable on the basis of the following capital budgeting evaluation methods? And Why? 1) Payback Period 11) Net Present Value The following are the present value factors 1 2 3 4 5 Discount factor/year 10% 11% 12% 13% 14% 15% 0.909 0.901 0.893 0.885 0.877 0.870 0.826 0.812 0.797 0.783 0.769 0.756 0.751 0.731 0.712 0.693 0.675 0.658 0.683 0.659 0.636 0.613 0.592 0.572 0.621 0.593 0.567 0.543 0.519 0.497

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