JBS Inc. is considering allocating a limited amount of capital investment funds among four proposals. Find below the four proposals.

Year	Proposal A ($)	Proposal B ($)	Proposal C ($)	Proposal D ($)
0	-540,000	-250,000	-640,000	-310,000
1	150,000	100,000	220,000	130,000
2	150,000	90,000	210,000	100,000
3	150,000	80,000	210,000	60,000
4	90,000	65,000	190,000	60,000
5	250,000	65,000	160,000	60,000

Cost of financing=12%.

The company'scapital rationing policy requires a maximum payback period of three (3) years. The company will invest only in the proposals that meet this standard. The companywill invest only $800,000 in new proposals.

1. Fill in the table below with the computations for the indicated capital budgeting criteria. Include only the final number (Round to four decimal places).

Proposal	Payback period	Net Present Value	Profitability Index
A	4.0000	$19,328.0312	0.0358
B	2.7500	$46,167.0038	0.1847
C	3.0000	$84,849.8696	0.1326
D	3.3333	$674.3272	0.0022

2. State which proposals pass the payback criterion and are accepted for further analysis.

____B and C_____

Briefly explain why: Proposal B and Proposal C are the two projects that follow the company's policy of having a payback period of no more than three years.

3. Assume that the proposals are indivisible projects. For the proposals that are accepted for further analysis in (2), indicate the best set of proposals to maximize owners' wealth. Keep in mind that there is a budget constraint of $800,000.

Proposals selected: Proposal B and Proposal C

Calculate the combined NPV for the selected proposals (show your calculations):

Briefly explain the rationale for your decision:

4. Assume that the proposals are divisible projects. For the proposals that are accepted for further analysis in (2), indicate the best set of proposals to maximize owners' wealth. Keep in mind that there is a budget constraint of $800,000.

Proposals selected: Proposal B and Proposal C

Calculate the combined NPV for the selected proposals (show your calculations):

Briefly explain the rationale for your decision: