part 4 and 5 please

Capital Rationing Decision for a Service Company Involving Four Proposals Clearcast Communications Inc. is considering allocating a limited amount of capital Investment funds among four proposals. The amount of proposed investment, estimated Operating income, and net cash flow for each proposal are as follows: Net Operating Investment Year Cash Income Flow Proposal A: $450,000 1 $120,000 2 $30,000 30,000 20,000 120,000 3 110,000 4 10,000 100,000 60,000 5 (30,000) $60,000 $510,000 Proposal B: $200,000 $60,000 40,000 $100,000 80,000 2 3 20,000 4 (10,000) (20,000) 60,000 30,000 20,000 $290,000 5 $320,000 $100,000 Proposal C: 1 2 $90,000 $36,000 26,000 26,000 16,000 90,000 90,000 3 4 80,000 80,000 An non 5 16,000 12nnnn $120,000 Proposal D: $540,000 1 $92.000 2 72,000 3 $440,000 $200,000 180,000 160,000 120,000 100,000 $2,000 5 12,000 (8,000) $220,000 $760,000 The company's capital rationing policy requires a maximum cash payback period of three years. In addition, a minimum average rate of return of 12% is required on al projects. If the preceding standards are met, the net present value method and present value indexes are used to rank the remaining proposals. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2. 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 0.747 5 0.621 0.567 0.402 0.497 6 0.705 0.564 0.507 0.432 0.335 7 0.513 0.665 0.279 0.452 0.376 0.327 0.467 8 0.233 0.404 0.627 0.194 0.284 0.361 0.424 0.592 0.162 0.247 0.322 0.386 0.558 10 4. For the proposals accepted for further analysis in part (3), compute the net present value. Use a rate of 12% and the present value of $1 table above. Round to the nearest dollar. Select the proposal accepted for further analysis. Proposal B Proposal D Present value of net cash flow total Amount to be invested Net present value 5. Compute the present value index for each of the proposals in part (4). If required, round your answers to two decimal places. Select proposal to compute Present value index. Proposal B Proposal D Present value index (rounded)