P12-28. Home Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present LO2, 3, Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal A Proposal B Proposal Initial investment. $100,000 $100,000 $100,000 Cash flow from operations Year 1.. 60,000 25,000 110,000 Year 2 40,000 40,000 Year 3 35,000 70,000 Disinvestment Lito (years) 3 years 3 years 1 year 0 Required a. Rank these investment proposals using the payback period, the accounting rate of return on initial investment and the net present value criteria. Assume that the organization's cost of capital is 12% and that all investments are in depreciable assets. Round calculations to four decimal places. b. Explain the difference in rankings. Which investment would you recommend