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Problem on Capital Investment Renaissance Capital Group is considering allocating a lid of among four proposals. The amount of proposed t net cash flow
Problem on Capital Investment Renaissance Capital Group is considering allocating a lid of among four proposals. The amount of proposed t net cash flow for each proposal are as follows Proposal A Investment $680,000 Atmurning Year $ 64,000 2 Flow $300.000 64,000 200,000 64.000 200,000 24,000 160,000 24,000 160,00 Proposal B: $240,000 $920,00 $320,000 $26,000 $ 90,0 2 26,000 90A 6,000 70 4 6,000 20 S (44,000) $ 20,000 $34 Proposal C: $108,000 1 $ 33,400 2 31,400 3 28,400 4 25,400 23,400 Proposal D: $400,000 12345 $142,000 $100,000 100,000 80,000 20,000 0 $300,000 e company's capital rationing policy requires a maximum dition, a minimum average rate of return of 12% is requ ndards are met, the net present value method and pres maining proposals.
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