I need help with question 8. I have done a lot of work but I do not know how to rank them or what is the best proposal.

Please provide a step-by-step explanation.

Any help would be much appreciated. Thanks!

Question 8 Incomplete answer Marked out of 2.00 \\ Flag question Ranking Investment Proposals: 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 A Proposal B Proposal C Initial investment $ 60,000 $ 60,000 $ 60,000 Cash flow from operations Year 1 50,000 30,000 60,000 Year 2 6,000 30,000 Year 3 29,000 25,000 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 12 percent. - Round payback period (years) to two decimal pla. . Round accounting rate of return to four decimal pla. . Round net present value to the nearest whole number. . Use negative signs with your answers, when appropriate. Proposal A Proposal B Proposal C Best proposal Payback period (years): Round answers 2 decimal places. D D D Accounting rate of retum.' Round answers 1:04 decimal places. D D D : Net present value; Round answers to nearest whole number. S D S D S D 3 (b) Factors explaining the differences in rankings include all of the following except: OThe accounting rate of return considers profitability while payback only considers the time required to recover the investment. (While the accounting rate of return explicitly considers the cost ofthe asset as part of annual depreciation the net present value method considers the cost of the asset as part of the initial investment. (Wet present value considers the timing of cash ows while payback considers only total cash flows. OThe net present value method considers the cost of capital while the payback method does not discount future cash ows. Please answer all parts of the question. Summary Proposal A Proposal B Proposal C Payback 2.14 2.00 1.00 Accounting rate of return 0.1389 0.1389 0.0000 Net present value $10,068 $8,496 ($6,428)Net present value @ 12% Present Values Year Factor Proposal A Proposal B Proposal C WNP 0.89286 544.643 526,786 $53,572 0.79719 54.783 $23,916 SO 0.71178 $20,642 $17,795 50 Total 570,068 568,496 $53,572 Initial investment ($60,000) ($60,000) ($60,000) Net present value $10,068 58,496 ($6,428)when appropriate. B Proposal C Best proposal 2 0 0 B C ankings incl A,B A, C B, C s profitability while payback only he investment