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Question 5 (20 marks) Alexander Inc. is considering four proposals for the construction of new facilities. The Accountantis supposed to evaluate four proposals. Proposal 1

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Question 5 (20 marks) Alexander Inc. is considering four proposals for the construction of new facilities. The Accountantis supposed to evaluate four proposals. Proposal 1 3 years $80,000 Proposal 2 4 years $178,000 Proposal 3 4 years $166,000 Proposal 4 7 years $308,000 Payback period Net present value Internal rate of retum Accrual accounting rate of return 12% 14% 11% 13% 8% 6% 4% 7% Required: How can this information be used in the decision making process for the new facilities? Does it cause any confusion? Which is the best proposal in your overview and why

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