Please help with the following:

1) What is the payback period for Proposal X?

2) What is the payback period for Proposal Y?

3) Based on your payback period calculations which proposal should you choose?

4) What is the accounting rate of return for Proposal X? 1) Enter percentages as whole numbers, e.g. enter 7.18% as 7.18 not 0.0718. 2) Please round to 2 decimal places.

5) What is the accounting rate of return for Proposal Y? 1) Enter percentages as whole numbers, e.g. enter 7.18% as 7.18 not 0.0718. 2) Please round to 2 decimal places.

6) Using only ARR and ignoring all other data - which proposal do you select? X or Y

7) Using ARR and incorporating Required Rate of Return into your decision making process - which proposal do you select? X or Y?

Proposal x Proposal Y Investment $1,000,000 $775,000 Useful life in years Estimated annual net cash inflows $185,000 $139,000 Residual value $90,000 $0 Depreciation method Straight-line Straight-line Required rate of return 8.5596 3.50%