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:

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.