Plasticon manufactures plastie containers used to package a variety of liquid consumer products (such as fabrie softener, cleaners, shampoo, hair spray, and liquid soap). Plastioon has received five proposals for capital investment projects. Your job is to evaluate these proposals and rank them in the order in which they should be funded. Begin your analysis by computing the average rate of return and cash payback period for each proposal. Any project that has an average rate of return of less than 15 percent or a cash payback period of longer than five years should be eliminated from further consideration. After this initial screening, compute the net present value (using a 15 percent discount rate) and internal rate of return for the remaining projects. Rank the projects based on both theirprofitability and overall merit to the coeporation (qualitative factors). $200,000 $250,000 S325,000 $500.000 $400,000 Cost Life (in years) Residual value Annual project income Annual net cash flows 10 SO $18,000 S43,000 10 SO $55,000 $65,500 $105,000 S0 $33,000 $17,000 $42,000 $45,000 S95,000 Project A: This proposal requests funds to purchase hardware and software that willallow the accounting department to process payrol in-house. Paychecks are currently processed by an outside payroll service company. The annual increase in net income and cash flows will result fron cost savings if the payroll function is no longer contracted to an outside company Projeet B: This proposal requests funds for new manufacturing equipment. This equipment will allow Plasticon to make containers as large as ten gallons. Currently, Plasticon can not make containers that are larger than three gallons. Project C: This proposal requests funds for equipment to make stick-on labels that are applied to the plastic containers. Currently, al stick-on labels are ordered from another company. This supplier has not proven very reliable in meeting delivery deadlines Projeet D: This proposal requests funds for automated manufacturing equipment that will reduce the cycle time from receipt of a customer order to delivery of that order. Plasticon's eycle time is currently seven days. The automated equipment will reduce that time to four days while saving costs due to the elimination of five jobs. It will also make Plasticon more competitive; the company's major competitor currently has a cycle time of five days proposal requests funds for computerized drafting and design equipment t Projeet E: This engineers to complete manufacturing instructions on special orders more quickly. This equipment should reduce Plasticon's cycle time from seven to five days. hat will allow Value of an Annuity of S1 at 4.968 4.799 4.639 4.487 4.344 4.207 4.078 5.650 5.426 5.216 5.019 4.833 4.659 4494 10