The management of Ortega Manufacturing has three different proposals under consideration. The Accounting Department has prepared the following information: Initial investment Useful life of equipment Estimated salvage value Payback period Net present value discounted at 15%* Proposal A $ 3,100,000 7 Years $0 Proposal B $ 2,450,000 7 Years $ 400,000 4.4 Years $ 21,600 Proposal c $ 2,055,000 7 Ye $ 100,000 4 Ye $ 15,800 4.2 Years $ (30,000) Which of the above proposals generates the greatest annual cash flow? Multiple Choice Proposal A Proposal B The management of Ortega Manufacturing has three different proposals under consideration. The Accounting Department has prepared the following information: Initial investment Useful life of equipment Estimated salvage value Payback period Net present value discounted at 15%* Proposal A $ 3,100,000 7 Years $ 0 4.2 Years $ (30,000) Proposal B $ 2,450,000 7 Years $ 400,000 4.4 Years $ 21,600 Proposal c $ 2,055,000 7 Ye 100,000 4 Ye $ 15,800 The above data indicate that: Multiple Choice rate of After considering the timing of future cash flows, each of the three proposals is expected to provide return in excess of 15%. Proposal A will generate net losses annually. O The management of Ortega Manufacturing has three different proposals under consideration. The Accounting Department has prepared the following information: Initial investment Useful life of equipment Estimated salvage value Payback period Net present value discounted at 15%* Proposal A $ 3,100,000 7 Years $ 0 4.2 Years $ (30,000) Proposal B $ 2,450,000 7 Years $ 400,000 4.4 Years $ 21,600 Proposal C $ 2,055,000 7 Ye $ 100,000 4 Ye $ 15,800 Based on the above data, which of the following is false? Based on the above data, which of the following is false? Multiple Choice Proposal A should be considered unacceptable. Proposal C is the best alternative because it has the shortest payback period, which is the most meaningful of the capital budgeting statistics. Proposal A's negative net present value indicates that this alternative will not generate management's required rate of return. Although proposals B and Care each acceptable, proposal B is a better investment considering the time value of money