(Solved): Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Prese ...

Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutuallydexclusive investment proposals: \table[[,Proposal,Proposal],[,Proposal,,],[Initial investment,

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Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: \table[[,Proposal X,Proposal Y,Proposal Z],[Initial investment,$69,000,$69,000,$69,000],[Cash flow from operations,,,],[Year 1,60,000,34,500,69,000],[Year 2,9,000,34,500,],[Year 3,33,500,33,500,],[Disinvestment,0,0,0],[Life (years),3 years,3 years,1 year]] Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and the net present value criteria. Assume th of capital is 10 percent. Note: Follow rounding instructions noted for each computation. Use a negative sign with your answers, when appropriate. \table[[,Proposal X,Proposal Y,Proposal Z,Best proposal],[Payback period (years),2,

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,Z,s],[Accounting rate of return; Round answers to 4 decimal places.,

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,*],[Net present value; Round answers to nearest whole number.,

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