The management of Ortega Manufacturing has three different proposals under consideration. The Accounting Department has prepared the following information: Proposal A Proposal B Proposal C Initial investment $ 3,100,000 $ 2,450,000 $ 2,055,000 Useful life of equipment 7 Years 7 Years 7 Years Estimated salvage value $ 0 $ 400,000 $ 100,000 Payback period 4.2 Years 4.4 Years 4 Years Net present value discounted at 15%* $ (30,000) $ 21,600 $ 15,800 The above data indicate that: Multiple Choice

After considering the timing of future cash flows, each of the three proposals is expected to provide a rate of return in excess of 15%.

Proposal A will generate net losses annually.

If the salvage value of proposal A were $52,000 instead of zero, proposal A would have the highest net present value.

The present value of proposal B's future cash flows is $2,471,600.