Hi

Please see below two questions and please show all workings thanks!

1. Payback Period, Accounting Rate of Return,

and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals:

	Proposal X	Proposal Y	Proposal Z
Initial investment	$98,000	$98,000	$98,000
Cash flow from operations
Year 1	90,000	49,000	98,000
Year 2	8,000	49,000
Year 3	49,000	49,000
Disinvestment	0	0	0
Life (years)	3 years	3 years	1 year

(a) Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and the net present value criteria. Assume that the organization's cost of capital is 10 percent.

Round accounting rate of return four decimal places. Round net present value to the nearest whole number. Use negative signs with your answers, when appropriate.

	Proposal X	Proposal Y	Proposal Z	Best proposal
Payback period (years)				Answer X Y,Z Z Y X,Z X,Y
Accounting rate of return				Answer X Y,Z Y X,Z X,Y Z
Net present value				Answer X Y X,Z Y,Z X,Y Z

2. Unequal Annual Net Cash Inflows Salt River Company is evaluating a capital expenditure proposal that has the following predicted cash flows:

Initial investment	$(56,200)
Operation
Year 1	35,000
Year 2	20,000
Year 3	15,000
Salvage	0

(a) Using a discount rate of 12 percent, determine the net present value of the investment proposal.(Round to the nearest whole number.) $

(b) Determine the proposal's internal rate of return.(Round to the nearest whole percentage.)

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