Mason Co. is evaluating two alternative investment proposals. All revenue and expenses other than depreciation will be received and paid in cash. The company uses the straight-line depreciation method. Below are data for each proposal: Initial Investment cost Estimated useful life Estimated salvage value Estimated annual Cash flow Required rate of return Proposal AS) 168,000 5 years 4,000 48,400 Proposal B (5) 192,000 6 years 0 48,000 12% Required: Compute the following for each proposat: A- Compute payback period in years? Which proposal would you select based on payback period only? 8- Compute Accounting Return of Return? Which proposal would you select based on the accounting rate of return only C- Compute the net present value and Profitability index. Based on your analysis in A, B and Cabove, which proposal appears to be the best investment? And why D- Two important steps in decision making are: (1) to be aware of the importance of not only financial costs/benefits but also broader non-financial considerations and secondary effects of any decision; and (2) to recognize the effect of the decision on non-financial performance measures of success. Comment and give examples ---Present Value Factors The PV of $1 due in 1 year discounted at 12% is 0.893 The PV of $1 due in 2 years discounted at 12% is 0.797 The PV of $1 due in 3 years discounted at 12% is 0.712 The PV of $1 due in 4 years discounted at 12% is 0.636 The PV of $1 due in 5 years discounted at 12% is 0.567 The PV of $1 due in 6 years discounted at 12% is 0.507