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Proposal A Proposal B Proposal C Initial investment $ 60,000 60,000 60,000 Cash flow from operations 50,000 6,000 29,000 Year 1 Year 2 Year 3

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Proposal A Proposal B Proposal C Initial investment $ 60,000 60,000 60,000 Cash flow from operations 50,000 6,000 29,000 Year 1 Year 2 Year 3 30,000 30,000 25,000 60,000 Disinvestment Life (years) 3 years 3 years 1 year (a) 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 12 percent. Round payback period (years) to two decimal places Round accounting rate of return to four decimal places Round net present value to the nearest whole number .Use negative signs with your answers, when appropriate Best proposal Proposal A Proposal B Proposal C 2.14 Payback period (years); Round answers 2 decimal places. Accounting rate of return; Round answers to 4 decimal places 1.41666

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