Renaissance Capital Group is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated operating income, and net cash flow for each proposal are as follows: Proposal Investment Year Operating Income Net Cash Flow Proposal A: $500,000 1 $ 45,000 $ 145,000 Proposal A: 2 40,000 140,000 Proposal A: 3 25,000 125,000 Proposal A: 4 20,000 120,000 Proposal A: 5 5,000 105,000 Total $135,000 $635,000 Proposal B: $400,000 1 $ 40,000 $ 120,000 Proposal B: 2 20,000 100,000 Proposal B: 3 10,000 90,000 Proposal B: 4 10,000 90,000 Proposal B: 5 6,000 86,000 Total $ 86,000 $486,000 Proposal C: $380,000 1 $ 54,000 $ 130,000 Proposal C: 2 49,000 125,000 Proposal C: 3 49,000 125,000 Proposal C: 4 44,000 120,000 Proposal C: 5 44,000 120,000 Total $240,000 $620,000 Proposal D: $675,000 1 $135,000 $270,000 Proposal D: 2 120,000 255,000 Proposal D: 3 90,000 225,000 Proposal D: 4 15,000 150,000 Proposal D: 5 10,000 145,000 Total $370,000 $1,045,000 The company's capital rationing policy requires a maximum cash payback period of 3 years. In addition, a minimum average rate of return of 10% is required on all projects. If the preceding standards are met, the net present value method and present value indexes are used to rank the remaining proposals. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1. Compute the cash payback period for each of the four proposals.