Presented is information pertaining to the cash flows of three mutually exclusive investment proposals:
		Proposal X		Proposal Y		ProposalZ
Initial investment		$ (80,000.00)		$ (80,000.00)		$ (80,000.00)
Cash flow from operations
Year 1		$ 50,000.00		$ 40,000.00		$ 100,000.00
Year 2		$ 10,000.00		$ 30,000.00		$ -
Year 3		$ 40,000.00		$ 30,000.00		$ -
Disinvestment		$0.00		$0.00		$0.00
Life (years)		3 years		3 years		1 year
Select thebestinvestment proposalusing the payback period, and the accounting rate of return on initial investment. Assume that the organization's cost of capital is 12 percent, and the initial investment is fully depreciated over the project timeline.
Use a negative sign with your answers, when appropriate.
	Payback period (years)
Proposal X		years
Proposal Y		years
Proposal Z		years
Best proposal:
	Accounting rate of return
Proposal X
Proposal Y
Proposal Z
Best proposal: