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	$843,341	Investment	$2,691,635	Investment	$1,791,650	Investment	$918,346
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	$80,500	$230,000	$294,500	$950,000	$220,000	$500,000	$109,000	$380,000
2	81,000	230,000	294,775	950,000	220,000	500,000	109,000	380,000
3	81,500	230,000	295,050	950,000	220,000	500,000	109,000	380,000
4	82,000	230,000	295,325	950,000	220,000	500,000	109,000	380,000
5	82,500	230,000	295,600	950,000	220,000	500,000	109,000	380,000
Total	$407,500	$1,150,000	$1,475,250	$4,750,000	$1,100,000	$2,500,000	$545,000	$1,900,000

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.

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	%
Proposal Tango	%
Proposal Uniform	%
Proposal Victor	%

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
Amount to be invested
Net present value

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

Select the proposal to compute Proposal Tango Proposal Victor

present value index.
Present value index (rounded)