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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

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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 Initial investment $ 100,000 $ 100,000 $ 100,000 Cash flow from operations Year 1 60,000 25,000 110,000 Year 2 40,000 40,000 Year 3 35,000 70,000 Disinvestment 0 0 0 Life (years) 3 years 3 years 1 year Rank these investment proposals 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% and that all investments are in depreciable assets. Note: Follow rounding instructions noted for each computation. Use a negative sign with your answers, when appropriate. Proposal A Proposal B Proposal C Best proposal Payback period (years); Round answers 2 decimal places. 0 0 Accounting rate of return; Round answers to 4 decimal places. 0 Net present value: Round answers to nearest whole number. $ 0 $ 0$ 0

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