PR 26-6A 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, estimated income from operations, and net cash flow for each proposal are as follows: OBJ. 2, 3, 5 Income from Operations Net Cash Flow Investment $680,000 Year 64,000 64,000 64,000 24,000 24,000 $240,000 26,000 26,000 6,000 6,000 (44,000) 20,000 $200,000 200,000 200,000 160,000 160,000 $920,000 90,000 90,000 70,000 0,000 20,000 $340,000 Proposal A: Proposal B: 320,000 (Continued)