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 Cash flow from operations $ 100,000 $ 100,000 $ 100,000 Year 1 Year 2 Year 3 Disinvestment Life (years) 60,000 25,000 110,000 40,000 40,000 35,000 0 70,000 0 0 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 Payback period (years); Round answers 2 decimal places. Accounting rate of return; Round answers to 4 decimal places. Net present value; Round answers to nearest whole number. $ 2 Proposal B 2.5 Proposal C 0.91 12 10,371 $ 12 4,034 $ 10 A,B (1,786) A Best proposal