Example: $3\mathrm{.}4$: Microtec is a small manufacturer of microcomputers. Its board of directors is faced with the problem of evaluating four proposals and deciding which, if any, of the alternatives are acceptable. Table $3\mathrm{.}1$ shows the expected annual cash flows and available capital $($$$\text{'}000$s$)$ over the next four years. Cash inflows are shown as positive values while outflows are negative. The cost of capital is taken to be $15\%$ per annum

$\backslash$table$[[$Proposals$,$Year $1,$Year $2,$Year $3,$Year $4],[1,-60,0,40,70],[2,-50,-30,50,100],[3,-40,-80,100,90],[4,,-35,110,-50],[$Capital available,$100,100,50,50]]$

Capital requirements appear as negative values while net receipts are positive. Management's objective is to maximize the rate of return, i$.$e$.,q,$ the total NPV of the selected proposals