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Header Q5. (20 marks) Monitor Consulting Inc. is in need of a Date Analytic Terminal for its financial analysts. The company has received three proposals,

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Header Q5. (20 marks) Monitor Consulting Inc. is in need of a Date Analytic Terminal for its financial analysts. The company has received three proposals, with related facts as follows: Proposal A Proposal Proposal Initial investment in equipment$90,000$90,000$90,000 Annual cash inflow increases in operations: Year 180,00045,00090,000 Year 210,00045,0000 Year 345,00045,0000 Salvage value000 Estimated life 3 yrs 3 yrs 1 yr. The company uses straight-line depreciation for all capital assets. Ignore income taxes. Required: a Compute the payback period, net present value, and accrual accounting rate of return using average annual income, for each proposal. Use a discount rate of 14 percent b. Rank each proposal 1, 2, and 3 using each method separately. Which proposal is best? Why? Page Break 8 100% words English (US) ORI e (hp)

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