Madison Capital Group is considering allocating a limited amount of capital investment funds among four proposals The amount of proposed investment, estimated income from operationsand he cash flow breach proposales follows Income from Net Cash Investment Year Operations few Proposal $ $40.000 42.000 550.000 42.000 5 350.000 15 42.000 $ 150.00 455.000 50.000 5 $18.000 $90.000 $ $530,000 90.000 Proposal $ 5 250,000 50.000 25 40.000 35 30.000 15.000 55 15.000 $ 250,000 5 300.000 5 0.000 5 30.000 s 65.000 55.00 $400.000 Proposal 5 540,000 15 25 35 45 92.000 32.000 12.000 62.000 22.000 350.000 5 5 5 $ 3 5 220.000 200.000 230.000 190.000 55 $ 990.000 Proposal 5 310,000.00 1 568,000.00 2 $ 38,000.00 1 $ 2.000.000 4 $ 2.000.00 5 $3.000.00 $100,000.00 $ 130,000.00 $ 100.000.00 550,00000 $ DO DO 500 DO $30 DOO The company's capital rationing policy requires a maximum cash payback period of three years. In addition average rate of return of 12% is required on al projects. If the preceding standards are met, the net prestate method and present value indexes are wied to rank the remaining proposal Instructions 1. Compute the cash payback period for each of the four proposal Round to nearest month 2. Giving effect to straight line depreciation on the investments and assuming no estimated residual valor compute the average rate of return for each of the four proposal Round to one della 3. Using the following format, summarize the results of your computations in parts (1) and 3 by placing a check mark in the appropriate colume at the right, indicate which proposals should be accepted for further is and which should be rejected Cash Payback Periods Average Rate of return Accept for Further Analysis O Red Proposal A B D 4. For the proposals accepted for further analysis in part (3) compute the represent value threat of 1 and the present value of $1 table appearing in the chapter. Round to the nearest 5. Compute the present value index for each of the proposals in part (4. Round town decimal places 6 Rare the proposals from most attractive to least attractive, based on the present values of how computed in part 4 7. Rank the proposals from most attractive to least attractive, based on the present value indexes.computed in part 15 & Using Excel, compute the internal rate of return 9. Based upon the analyses done above, comment on the relative attractiveness of the proposed (6) and (7) Which provides the most useful results 10. you were making the investment section, show how you would rank the proposals and by watch you made your decision