XYZ Company has received five proposals for capital investment projects. your job is to evaluate these proposals and rank them in the order in which they should be funded. Begin your analysis by computing the average rate of return and cash payback period for each proposal. Any project that has an average rate of return of less than 12 percent or a cash payback period of five years or longer should be eliminated from further consideration. After this initial screening, compute the net present value (using a 12 percent discount rate) and internal rate of return for the remaining projects. Rank the projects based on both their profitability and overall merit to the corporation (qualitative factors). Projects: Cost Life (in years) Residual value A $50,000 10 $0 B $420,000 8 SO Annual project income $5,400 $26,700 Annual net cash flows $10,400 $79,200 $220,000 10 $0 $17,500 $39,500 D $90,000 9 SO $10,250 $20,250 E $84,000 $0 $ 7,550 $19,550 Present Value of an Annuity of $1 at Compound Interest n/i 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 7 4.86842 4.71220 4.56376 4.42261 4.28830 4.16042 4.03857 3.92238 8 5.33493 5.14612 4.96764 4.79877 4.63886 4.48732 4.34359 4.20716 9 5.75902 5.53705 5.32825 5.13166 4.94637 4.77158 4.60654 4.45057 6.14457 5.88923 5.65022 5.42624 5.21612 5.01877 4.83323 4.65860 10