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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
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: ProposalX Proposal Y Proposal Z Inicial Investment Cash flow from operations Year 1 Year 2 Year 3 Disinvestment Life (years) 69,000 $69,000 $69,000 60,000 34500 9,000 9,000 34,500 33,500 33,500 years years 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 10 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. ProposalX ProposalY Proposal Z Best proposal Payback period (years Accounting rate of return Net present velue 137X
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