Business, 15.04.2020 00:51 officialgraciela67

Presented is information pertaining to the cash flows of three mutually exclusive investment proposals:

Proposal X Proposal Y Proposal Z
Initial investment $98,000 $98,000 $98,000
Cash flow from operations
Year 1 90,000 49,000 98,000
Year 2 8,000 49,000
Year 3 49,000 49,000
Disinvestment 0 0 0
Life (years) 3 years 3 years 1 year

(a) Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and the net present value criteria. Assume that the organization's cost of capital is 10 percent.

Round accounting rate of return four decimal places.

Round net present value to the nearest whole number.

Use negative signs with your answers, when appropriate.

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