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QUESTION 7 Not complete Points out of 10.00 p Flag question Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented

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QUESTION 7 Not complete Points out of 10.00 p Flag question Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal A Proposal B Proposal C Initial investment 45,000 45,000 45,000 Cash flow from operations Year 1 40,000 22,500 45,000 Year 2 5,000 22,500 Year 3 22,500 22,500 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 accounting rate of return four decimal places. Round net present value to the nearest whole number. Use negative signs with your answers, when appropriate. Proposal A Proposal B Proposal C Best proposal Payback period (years) Accounting rate of return A,B Net present value B,C

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