Presented is information pertaining to the cash flows of three mutually exclusive investment proposals:

	Proposal X	Proposal Y	Proposal Z
Initial investment	$98,000	$98,000	$98,000
Cash flow from operations
Year 1	90,000	49,000	98,000
Year 2	8,000	49,000
Year 3	49,000	49,000
Disinvestment	0	0	0
Life (years)	3 years	3 years	1 year

Select the best investment proposal 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 10 percent.

Note: Follow rounding instructions noted for each computation. Use a negative sign with your answers, when appropriate.

	Proposal X	Proposal Y	Proposal Z	Best proposal
Payback period (years)
Accounting rate of return; Round answers to 4 decimal places.
Net present value; Round answers to nearest whole number.