Soccer consultants Bob and John, require a computer network for their employees. They received three proposals, with details outlined below:

	Proposal A	Proposal B	Proposal C
Initial investment in equipment	$100,000	$80,000	$70,000
Annual cash increase in operations:
Year 1	70,000	35,000	80,000
Year 2	10,000	45,000	0
Year 3	45,000	45,000	0
Salvage value	0	0	0
Estimated life	3 yrs	3 yrs	1 yr

Compute the net present value for each proposal. Use a required rate of return of 14%.

Rank each proposal 1, 2, and 3 using each method separately. Which proposal is best? Why?