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:

Initial investment	$69,000	$69,000	$69,000
Cash flow from operations
Year 1	60,000	34,500	69,000
Year 2	9,000	34,500
Year 3	33,500	33,500
Disinvestment	0	0	0
Life (years)	3 years	3 years	1 year

(a) Select thebestinvestment proposalusing 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 10 percent.

Round accounting rate of returnfour decimal places. Round net present value to the nearest whole number. Use negative signs with your answers when appropriate.

Payback period (years)	Answer	Answer	Answer	AnswerX,ZXZX,YYY,Z
Accounting rate of return	Answer	Answer	Answer	AnswerYX,YZXX,ZY,Z
Net present value	Answer	Answer	Answer	AnswerX,YXYZX,ZY,Z