need help with the last part

Capital Rationing Decision for a Service Company involving Four Proposals Renaissance Capital Group is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, imated operating income, and net cash flow for each proposal are as follows: Operating Net Cash Investment Year Income Flow Proposal A! $680,000 1 $ 64,000 $ 200,000 2 64,000 200,000 3 64,000 200,000 4 24,000 160,000 5 24,000 160,000 $240,000 $920,000 Proposal : $320,000 1 $ 90,000 $ 26,000 26,000 2 90,000 3 6,000 6,000 (44,000) 70,000 70,000 20,000 $340,000 $ 55,000 53,000 $ 20,000 Proposal $100,000 1 $ 33,400 31,400 2 3 28,400 50,000 47,000 4 25,400 23,400 $142,000 5 45,000 $ 250,000 $ 180,000 180,000 $400,000 1 Proposal D: $100,000 100,000 2 . 31000 100.000 100,000 10.000 160.000 20.000 100.000 30,000 $300,000 $700.000 The company's capital rationing policy requires a maximum cash payback period of three years. In addition, a minimum average rate of return of 12 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 Present Value of $1 at Compound Interest Year 1096 129 159 204 1 0.943 0.909 0.893 0.870 0.833 2 0.690 0.826 0.797 0.756 0.694 3 0.040 0.751 0.712 0.650 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 Required: 1. Compute the cash payback period for each of the four proposals. Cash Payback Period 3 years 6 months Proposal A 1. Compute the cash payback period for each of the four proposals Cash Payback Period Proposal A 3 years 6 months Proposal 4 years Proposal 2 years v Proposal D 2 years 3 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. If required, round your answers to one decimal place. Average Rate of Return Proposal A 14.1 2.5 Proposal 52.6 Proposal c Proposal D 30 14.1 A 3. Using the following format, summarize the results of your computations in parts (1) and (2) by placing the calculated amounts in the first two columns on the let and indicate which proposals should be accepted for further analysis and which should be rejected. If required, round your answers to one decimal place. Proposal Cash Payback Period Average Rate of Return Accept or Reject 3 years, 6 months Reject B 4 years 2.5 % Reject 2 years 52.66 Accept 2 years, 3 months 30% Accept D Previous Ines accepted for further analysis in part (3), compute the net present value. Use a rate of 15% and the present value of $1 table above, Roum Ic 4. For the proposals accepted for further analyses in part (3), compute the represente. Use rates and the present vele of stable above. Round to the nearest dollar Select the proposal accepted for further analysis. Proposal Proposal Present value of net cash flow total Less amount to be invested Net present value 5. Compute the present value index for each of the proposals in part (4). It required, round your answers to two decimal places Select proposal to compute Present value index Proposal Proposal Present value Index (rounded) 6. Rank the proposals from most attractive to least attractive, based on the present value of net cash Mows computed in part (4) Rank ist Proposal cx Rank 2nd Proposal 7. Rank the proposals from most attractive to least attractive, based on the present value indexes computed in part (5) Rank 1st Proposal Rank 2nd Proposal D 8. The analysis indicates that although Proposal 8 X has the larger net present value, it is not as attractive as Proposal CV in terms of the amount of present value per dollar invested. Proposal DV requires the larger investment. Thus, management should use investment resources for Proposal CV before investing in Proposal AX , absent any other qualitative considerations that may impact the decision