Kopecky Industries Inc. is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash flow for each proposal are as follows:

Project Name	Sierra		Tango		Uniform		Victor
	Investment	$900,000	Investment	$1,912,500	Investment	$1,741,685	Investment	$966,680
Year	Income from Operations	Net Cash Flows	Income from Operations	Net Cash Flows	Income from Operations	Net Cash Flows	Income from Operations	Net Cash Flows
1	$96,000	$240,000	$263,500	$850,000	$242,000	$550,000	$108,000	$400,000
2	96,500	240,000	263,775	850,000	242,000	550,000	108,000	400,000
3	97,000	240,000	264,050	850,000	242,000	550,000	108,000	400,000
4	97,500	240,000	264,325	850,000	242,000	550,000	108,000	400,000
5	98,000	240,000	264,600	850,000	242,000	550,000	108,000	400,000
Total	$485,000	$1,200,000	$1,320,250	$4,250,000	$1,210,000	$2,750,000	$540,000	$2,000,000

Present Value of $1 at Compound Interest
Year	6%	10%	12%	15%	20%
1	0.943	0.909	0.893	0.870	0.833
2	0.890	0.826	0.797	0.756	0.694
3	0.840	0.751	0.712	0.658	0.579
4	0.792	0.683	0.636	0.572	0.482
5	0.747	0.621	0.567	0.497	0.402
6	0.705	0.564	0.507	0.432	0.335
7	0.665	0.513	0.452	0.376	0.279
8	0.627	0.467	0.404	0.327	0.233
9	0.592	0.424	0.361	0.284	0.194
10	0.558	0.386	0.322	0.247	0.162

The company's capital rationing policy requires a maximum cash payback period of three years. In addition, a minimum average rate of return of 20% is required on all projects. If the preceding standards are met, the net present value method and present value indexes are used to rank the remaining proposals.

	Cash Payback Period
Proposal Sierra	2 years3 years3 years 9 months3 years 3 monthsunable to determine3 years 9 months
Proposal Tango	2 years3 years2 years 3 months2 years 9 monthsunable to determine2 years 3 months
Proposal Uniform	2 years3 years3 years 2 months3 years 10 monthsunable to determine3 years 2 months
Proposal Victor	2 years3 years2 years 5 months2 years 7 monthsunable to determine2 years 5 months

2. Giving effect to straight-line depreciation on the investments and assuming no estimated residual value, compute the average rate of return for each of the four proposals. Round to one decimal place.

	Average Rate of Return
Proposal Sierra	NEED ANSWER
Proposal Tango	NEED ANSWER
Proposal Uniform	NEED ANSWER
Proposal Victor	NEED ANSWER

3. Using the results from parts (1) and (2) determine which proposals should be accepted for further analysis and which should be rejected.

	Accept / Reject
Proposal Sierra	Accept for further analysisRejectReject
Proposal Tango	Accept for further analysisRejectAccept for further analysis
Proposal Uniform	Accept for further analysisRejectReject
Proposal Victor	Accept for further analysisRejectAccept for further analysis

4. For the proposals accepted for further analysis in part (3), compute the net present value. Use a rate of 12% and the present value of $1 table above. If required, use the minus sign to indicate a subtraction or negative net present value.

Select the proposal accepted for further analysis.	Proposal SierraProposal TangoProposal Tango	Proposal UniformProposal VictorProposal Victor
Present value of net cash flow total	NEED ANSWER	NEED ANSWER
Amount to be invested	NEED ANSWER	NEED ANSWER
Net present value	NEED ANSWER	NEED ANSWER

5. Compute the present value index for each of the proposals in part (4). Round to two decimal places.

Select the proposal to compute present value index.	Proposal SierraProposal TangoProposal Tango	Proposal UniformProposal VictorProposal Victor
Present value index (rounded)	NEED ANSWER	NEED ANSWER :)